The Lucknow Police Commissionerate busted a GST fraud racket on Friday, uncovering tax evasion of nearly RS37 lakh and suspicious transactions totaling over Rs4.7 crore.
Modus Operandi of the Racket
According to police, the racket targeted economically weaker individuals, offering rS10,000–15,000 in exchange for Aadhaar cards, PAN details, bank accounts, and mobile numbers. These documents were then used to create fake GST firms using forged rent agreements and electricity bills.
The fraud involved generating fake invoices and e-way bills, making bogus transactions appear legitimate, and enabling the illegal sale of input tax credit (ITC) for commissions.
Origins of the Case
The investigation began following a complaint filed on November 3, 2025, by Ashok Kumar Tripathi, Deputy Commissioner, State Tax, Lucknow. The complaint alleged that a firm named K S Enterprises, registered at a bogus address on Bhagwati Charan Verma Marg, was being used for fraudulent transactions in scrap trading.
Arrests and Roles
Three accused were arrested in a joint operation by Mahanagar Police Station, the cyber cell, and a surveillance team:
Deepak Kumar (25) – facilitated fraudulent transactions via his bank account
Prashant Tiwari (25) – handled fund transfers, including receiving rS15 lakh through cheques
Kailash Maurya (32) – prepared fake firm seals and assisted in account operations
Police said the accused used multiple bank accounts to route fraudulent transactions, causing substantial loss to government revenue.
