The Uttar Pradesh Special Task Force (STF) has arrested two Delhi-based B.Com graduates for their alleged involvement in a multi-state Goods and Services Tax (GST) fraud network that reportedly facilitated fraudulent Input Tax Credit (ITC) claims and caused revenue losses worth crores of rupees to the government. The arrests are part of an ongoing investigation into a larger interstate syndicate accused of operating shell companies and generating fake GST transactions.
STF Arrests Accused After Months of Pursuit
The arrested individuals have been identified as Saurabh Agrawal (35) and Ajit Kumar (32), both residents of Delhi. According to STF officials, the duo had been absconding in connection with a GST fraud case registered at Kotwali Khalilabad police station in Uttar Pradesh’s Sant Kabir Nagar district. Each accused carried a reward of ₹50,000 announced for information leading to their arrest.
The STF apprehended the two men from the Hari Nagar area of West Delhi following an intelligence-led operation. Investigators said both were engaged in accountancy-related work and allegedly used their knowledge of taxation procedures to facilitate fraudulent GST activities.
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Network Allegedly Created Bogus Firms and Fake Transactions
According to investigators, the accused were part of a larger network that obtained GST registrations using forged and fabricated documents. Once registered, the shell entities allegedly generated fake sales invoices and e-way bills without any actual movement of goods.
Deputy SP Pramesh Shukla stated that these fabricated transactions were subsequently used to provide fraudulent ITC benefits to legitimate businesses seeking to reduce their tax liabilities. Authorities allege that fake GST returns and fabricated transaction records were uploaded to the GST portal to create the appearance of genuine commercial activity.
An STF official said the firms largely existed only on paper, enabling unlawful tax credit claims through bogus purchase and sale records.
Probe Linked to Wider Interstate GST Evasion Syndicate
The case has been registered under provisions of the Bharatiya Nyaya Sanhita (BNS), the Information Technology Act, and Section 132 of the GST Act. Earlier in the investigation, two other accused, Sandeep Kumar and Aman Upadhyay, were arrested in February 2026. However, several suspects, including Agrawal and Kumar, allegedly evaded arrest until the recent operation.
Investigators have indicated that the syndicate employed sophisticated methods, including circular trading and shell companies, to conceal fraudulent activities and pass on fake tax credits across multiple entities.
Authorities Continue Investigation
The STF is continuing its investigation to identify additional members of the network and trace the full extent of the alleged tax evasion. Officials are examining financial records, GST filings, and digital evidence to determine the scale of the fraud and identify businesses that may have benefited from the illicit ITC claims.
The arrests highlight ongoing enforcement efforts against organized financial crime involving fake GST registrations, shell companies, and fraudulent invoicing schemes that result in substantial losses to government revenue.
