Big GST Scam Exposed In Unnao, Fake Companies Used to Cheat Government

A big GST fraud has come to light in Kaimganj (Unnao), where police have filed a case against 25 people. These individuals were running a fake business network. They created a bogus company and used forged e-way bills to pretend that tobacco was being transported, while in reality, no goods were actually moved.

The case came to light after the GST department shared information about suspicious activities. Following this, police stopped three men (Arbaaz Ali, Faisal, and Karim Nagar) while they were going through their Scorpio under suspicious circumstances. The case concerning the same was registered two days ago. During questioning, officials recovered documents related to several companies and found evidence of fake billing on their mobile phones, including emails and WhatsApp chats.

During the investigation, officials found that Noah Tobacco Company had wrongly claimed ITC of Rs 20 lakh each under CGST and SGST. The company showed that it had purchased unmanufactured tobacco worth Rs 1.51 crore from AK Traders, but in reality, no goods were actually supplied.

During the investigation, Noah Tobacco Company was found to have evaded tax worth Rs 63.05 lakh. In a similar way, Aman Trading Company is alleged to have evaded GST of Rs 1.68 crore, including GST of Rs 54.08 lakh; Yaduvanshi Traders for Rs 6.80 lakh; and AK Traders for Rs 43.98 lakh. As per the report, on the evening of March 20 at around 5:15 pm, Inspector Somveer Singh, along with his team and CGST Superintendents R.B. Singh and Sanjay Saxena, visited and inspected several firms.

During the investigation, it was discovered that many of the firms were not operating. Some company addresses belonged to houses, while other companies had different businesses running there. No actual trading activity was found at these locations; police also found that the accused were using other people’s Aadhaar cards to register fake companies. These people were paid money in exchange for other documents. The fake firms were used to create false bills and claim tax benefits without any real transactions.

The total GST fraud in this case is about Rs 1.68 crore. So far, three people have been arrested, and 25 others are facing charges. The investigation is still going on, and more arrests could happen.