Mirzapur: In a major crackdown on tax evasion in Uttar Pradesh, authorities have unearthed a large-scale GST fraud in Mirzapur, where a coal trader and his son allegedly created five fake firms to evade taxes worth nearly ₹36 crore. The case highlights a systematic attempt to exploit loopholes using forged documents and shell entities, causing significant loss to government revenue.
Arrest of Coal Trader and Son
The arrested accused have been identified as coal trader Yagyavasini Singh and his son Swatej Singh alias Raj, both residents of Bhadohi. They were apprehended from the Bathua area of Mirzapur. Preliminary investigation reveals that the duo set up five fictitious firms and used them to carry out large-scale fake billing operations to evade Goods and Services Tax.
The incident traces back to a complaint filed on December 22, 2025, alleging GST evasion through firms named ‘Bajaj Enterprises’ and ‘Banaras Trading’. As the probe progressed, it became clear that these were only part of a wider, well-organized network.
FCRF Launches Premier CISO Certification Amid Rising Demand for Cybersecurity Leadership
Network of Fake Firms and Forged Identities
Further investigation revealed that two firms were registered in the names of the father and son, while three others were fraudulently registered under the names of two different individuals using forged documents. These entities were used to generate fake invoices and claim undue input tax credit benefits, a common method in GST frauds.
Officials stated that approximately ₹5 crore in tax evasion was carried out through ‘Bajaj Enterprises’ and around ₹6 crore via ‘Banaras Trading’. Additionally, nearly ₹25 crore worth of tax evasion was linked to ‘Ganga Enterprises’, ‘Satyam Trading’, and another firm. This brought the total estimated tax evasion to ₹36 crore.
Expanding Probe and Search for Absconding Accused
Investigators also found that the accused projected large-scale business transactions on paper, while actual trade activity remained minimal. The coal business was used as a front to legitimize the fake transactions. A network of bank accounts and fabricated documentation was carefully managed to keep the operation running undetected for a long period.
Sources indicate that the accused resided in the Katra area of Mirzapur and operated their coal business from Aharora. Using this setup, they established and managed multiple fake firms across locations to facilitate the fraudulent activities.
The probe has also identified the involvement of two more individuals, in whose names three of the fake firms were registered. Both are currently absconding, and search operations are underway to trace them. Officials believe that their arrest could lead to further crucial revelations about the network.
A case has been registered under relevant sections, and further legal proceedings are in progress. Authorities are now focusing on identifying other associates linked to the network and determining whether more shell firms were involved. More arrests and significant disclosures are expected as the investigation deepens.
