GST Fraud: Police arrested 7 people in the crackdown on Rs.900 Crore GST Scam

A big GST fraud syndicate was discovered when Uttar Pradesh police held seven people involved in a large-scale scam in Muzaffarnagar on Tuesday. The gang had been running 48 shell firms to create fake GST bills totalling Rs.900 crore without any actual movement of goods. The fraud resulted in a reported revenue loss of Rs.125 crore to the government.

The accused, including four scrap company owners, exploited these shell firms to generate fraudulent GST invoices for themselves and others.

Police said they had been under investigation for some time, and investigators were able to apprehend the individuals after conducting a thorough investigation. Authorities are currently tracking even more people involved in the scam. Investigations are underway to determine the entire scope of the operation.

Tasleem, Asif, Junaid, Asu, Moein, and Azeem have all been arrested, and authorities are looking for more syndicate members.

Abhishekh Singh, SSP of Muzaffarnagar, stated that “information was coming in about a group involved in GST fraud. Under the supervision of SP (Dehat) Aditya Bansal, an investigation was carried out, resulting in the arrest of seven people. They were complicit in routinely taking GST.”

Police stated the gang members obtained or stole KYC information from unsuspecting people in order to open bank accounts and start businesses in their names. These facts were then passed on to Tasleem and Asif, who played important roles in the scam’s second stage.

Singh continued, “We have found 48 shell firms involved. When we cross-referenced the GST records, we discovered false GST bills totalling Rs.925 crore, resulting in a revenue loss of Rs.125 crore caused by 18% GST fraud. The probe is still ongoing.”