The Greater Noida Police have arrested two individuals accused of orchestrating a large-scale GST refund scam worth Rs51 crore. Over the past five years, the accused allegedly registered 85 fake firms using forged documents to claim fraudulent input tax credit (ITC) refunds.
On Monday, the Bisrakh police arrested Praveen Kumar (38) from Bahadurgarh in Hapur and Satendra Singh (37) from Bighraon village in Bulandshahr. Police recovered ten fake seals, Aadhaar cards, checkbooks, account-opening forms, and mobile phones from their possession.
According to DCP Central Noida Shakti Mohan Awasthi, the accused opened multiple bank accounts in the names of these fake firms and used fabricated invoices to claim GST refunds.
Police investigations revealed that the accused had opened accounts in several Bank of India branches in Ghaziabad and Gautam Buddh Nagar using forged KYC documents. Among the fake firms identified were Riddhi Siddhi Enterprises, Bhawani Impex, Jhalak Enterprises, Gaurav Enterprises, Damini India International, and Radhika Enterprises.
All addresses provided for these firms were found to be fictitious, and the individuals listed as business owners had no connection with the accused. Police suspect that bank officials failed to verify the documents properly, allowing the fraudulent accounts to operate freely and receive GST refund transfers.
Preliminary investigation suggests that the gang issued fake invoices totaling Rs350 crore over the years. The network was operated using nine mobile numbers linked to 18 SIM cards, while a total of 87 SIM cards were used to create and manage the fake firms.
To avoid detection, the gang communicated primarily through WhatsApp calls and emails, minimizing the risk of being traced. Police have now frozen all bank accounts linked to suspicious transactions and are tracking the financial trail.
Following the arrest of the two accused, the gang’s alleged mastermind has switched off his phone and gone into hiding. Investigators believe the racket spans across Delhi-NCR, Uttar Pradesh, Haryana, and Rajasthan.
Authorities are now probing whether bank employees and GST department officials were complicit in enabling the scam. Police have informed the GST department and are examining the accused’s call records, WhatsApp data, and financial transactions to uncover the full extent of the network.
The first team created fake firms using forged Aadhaar cards, PAN cards, utility bills, and rental agreements, securing GST registration numbers for them.
The second team used these registered firms to generate fake invoices and claim GST refunds, siphoning off crores from government revenue.
History of Similar GST Frauds in Noida Region
This is not the first large-scale GST fraud uncovered in Noida. In June 2020, Sector-20 Police arrested eight people who had floated 2,660 fake firms, claiming over ₹15,000 crore in fraudulent GST refunds across India. In September 2025, the Cyber Crime unit arrested a suspect for creating fake invoices worth ₹10 crore through forged company accounts and tax filings.
Financial experts warn that such scams not only bleed government revenue but also create compliance burdens for genuine businesses. They emphasize the urgent need for stronger digital verification systems, tighter GST refund monitoring, and automated document authentication to prevent organized financial frauds of this scale.
