Moradabad|November 28, 2025: The Uttar Pradesh State Tax Department has unearthed a major case of GST evasion worth ₹8 crore, after intercepting a timber-laden truck during a late-night checking drive. What appeared to be a routine verification quickly escalated into a full-fledged tax fraud investigation when officials discovered that 12 separate firms had been registered using the same mobile number—confirming a network of shell companies created for illegal tax advantages.
Based on the complaint filed by State Tax Officer Sunil Kumar Dagar, the department has registered an FIR against the prime accused Ehtesham Ahmed, truck driver Farman, and one unidentified individual, under multiple sections related to fraud and cheating.
Midnight interception leads to shocking revelations
The incident occurred around 1:30 a.m. on November 14, when the State Tax mobile squad was conducting routine inspections in the Dehri Khurram Umri Kala area. The team halted a truck loaded with timber and questioned driver Farman, a resident of Bijnor district. He informed officials that the consignment belonged to Jara Traders of Thakurdwara and was being transported to Lucky Timber, located in the Saharanpur–Yamunanagar belt. A scrutiny of documents revealed:
- Tax Invoice No.: 179
- Issued on: 13 November
- Quantity: 48,200 kg of timber
- Taxable value: ₹3.12 lakh
During verification, officers asked the driver to connect the team with firm owner Ehtesham Ahmed via phone. The next day, when officers ran a backend check on the mobile number used in the communication, a major irregularity surfaced the same mobile number was linked to 12 different GST-registered firms.
Shell firms found non-existent, department recommends GST registration cancellation
Following the discovery, the Assistant Commissioner, State Tax (Sector-2, Sitapur) conducted a physical inspection of the premises and documents associated with Jara Traders. The verification confirmed that:
- The firm did not exist at the registered location,
- The business documents were fabricated,
- No genuine trading activity was found.
The department has now formally requested the Central GST authorities to cancel the registrations of all entities linked to the number. Officials said that Ehtesham allegedly used these 12 shell companies to transport timber outside the state, evading GST by creating a fake supply chain supported by falsified invoices and e-way bills.
₹67 crore turnover traced, GST loss estimated at ₹8 crore
According to Additional Commissioner (Grade-II), three vehicles connected to Jara Traders have already been seized. The firm’s turnover has been pegged at ₹67 crore, and investigators believe that the tax loss to the government is at least ₹8 crore. More firms linked to the network may come under the scanner as the financial trail expands.
Crackdown widens: Two Rampur firms sealed
In a parallel enforcement drive targeting GST defaulters: Ibrahim Salim & General Order Supplier (dues: ₹41.19 lakh), NP Enterprises (dues: ₹46.38 lakh) were both sealed after repeated notices for tax dues went unanswered. Officials have initiated attachment proceedings and have prepared a list of additional major defaulters. The operation was led by Joint Commissioner (Executive) Shailendra Upadhyay, supported by Deputy Commissioner Sandesh Kumar Jain and other field officers.
21.84 crore worth of assets seized in November alone
As per Additional Commissioner (Grade-I) Ashok Kumar Singh: 627 firms in the zone faced attachment actions in November, Property worth ₹21.84 crore (movable and immovable) was seized, A total of ₹21.88 crore was recovered from major defaulters.
The crackdown is being viewed as a strong signal to tax evaders operating through fake firms and manipulated supply chains.
Rising challenge: Fake GST firms spreading across districts
Investigations over the past two months reveal a rising trend:
- Multiple firms registered under the same mobile number,
- Fake e-way bills supporting non-existent transactions,
- Bogus supply chains created to move high-value goods.
The department is now employing AI-based digital forensics to trace interconnected firms, transport routes, bank accounts, and backend GST filings.
