Two Individuals Arrested in Rs 1.7 Crore GST Fraud Involving Creation of Shell Firms

The police have recently uncovered a huge network of GST evasion involving the creation of fake firms and bogus invoices. In this regard, two persons were arrested by the police for their alleged involvement in this GST fraud.

The accused are being identified as Chunga Khan (43) and Salman Rehmani (32). These accused allegedly established fake firms using forged documents of poor individuals. These shell firms were used to create bogus invoices and e-way bills to show business transactions and sold illegal Input Tax Credit (ITC) to companies on commission. The fraud involves transactions worth over Rs 1.77 crore.

The arrest is followed by a complaint filed by Naresh Verma, the assistant commissioner in the GST audit section of the state department. The complaint filed on August 28, 2025, alleged that a firm named Ramkali Enterprises, registered at Ibrahim Pur in the Mal area of Lucknow, was a shell entity.

After receiving the complaint, the Mal police registered a case under the relevant provisions of the Bharatiya Nyaya Sanhita (BNS). The police started investigating the matter with the help of cyber and surveillance teams.

The investigation led to the uncovering of the GST evasion racket. The cops detained three mobile phones and a laptop from the accused.