Major GST Fraud Racket Unearthed: 35-year-old Accused Arrested in Rs 1.3 Crore GST Evasion Case

The Police and Crime Branch in Lucknow has recently exposed a major GST fraud operation worth Rs 1.3 Crore carried out by performing fraudulent transactions using bogus firms.

The police had caught Ravinder Giri, a 35-year-old from Lakhimpur Kheri, with phones and cash in hand. Here’s how the scam worked: the gang tricked poor villagers by promising loans or financial help, then collected their sensitive documents like Aadhaar Cards, PAN cards, bank account details and mobile numbers.

They used those companies to create a bogus Input Tax Credit (ITC), backing it all up with forged invoices and e-way bills. Then they used to sell these fake credits to other businesses, making money on illegal commissions. The accused has admitted his involvement in the fraud.

The police also discovered that the fraudsters were getting SIM cards in the names of the people they duped, just to keep the whole thing going. The State Tax Department kicked off the investigation following a complaint filed by the Assistant Commissioner of the State Tax Department; thereafter, the collective efforts of the cyber cell, surveillance team and Rahimabad police ultimately led to the reveal of the fraud.

The Additional Deputy Commissioner of Police (Crime), Kiran Yadav (IPS), has assured that they are not done yet; more arrests are likely as they dig deeper.