Special Task Force Arrests Two Delhi Graduates for Alleged Role in Multi-State GST Fraud Network

UP STF Arrests Two Delhi Graduates for Alleged Role in Multi-State GST Fraud Network

The Uttar Pradesh Special Task Force (STF), along with Sant Kabir Nagar Police, has apprehended two local Delhi residents accused of being part of an interstate GST fraud syndicate that allegedly enabled fraudulent Input Tax Credit (ITC) claims. The investigation pertains to Crime No. 577/2025 registered at Kotwali Khalilabad Police Station in Sant Kabir Nagar district. The case has been booked under various provisions of the Bharatiya Nyaya Sanhita, the Information Technology Act, and Section 132 of the Goods and Services Tax Act, 2017.

The accused are identified as Saurabh Agrawal and Ajit Kumar, who were arrested from West Delhi after absconding in yet another GST Fraud case for several months, carrying cash rewards of RS 50,000 on each other. The accused were engaged in accountancy-related work and established multiple shell entities using forged documentation for obtaining GST registrations and conducting fraudulent business transactions. Earlier in the investigation, two other accused, namely Sandeep Kumar and Aman Upadhyay, were arrested in February 2026.

STF officials have unearthed that the syndicate allegedly generated fake invoices, fabricated e-way bills and uploaded fictitious transaction details on the GST portal without any actual supply or movement of goods. These documents were then allegedly used to pass on inadmissible Input Tax Credit benefits to business entities seeking to reduce their tax liabilities unlawfully.

The probe has also uncovered the alleged use of banking credentials, login details, passwords and authentication systems associated with various firms. Funds corresponding to invoice values were transferred through bank accounts of shell entities and were withdrawn or transferred through multiple accounts to showcase a genuine commercial transaction.

The Task Force is currently examining financial records, GST returns, bank account transactions and digital evidence collected during the investigation and a firm named Yadav Enterprises is under scrutiny as it is alleged to have been used for generating fraudulent GST documentation.