In a significant breakthrough, Uttar Pradesh Police uncovered a gang involved in a massive Goods and Services Tax (GST) fraud in Muzaffarnagar, operating over a span of five years. The gang allegedly set up 48 fake businesses, generating fraudulent GST bills worth Rs925 crores, which resulted in the theft of Rs135 crore in GST payments.
On September 24, the police arrested seven members of the gang, including the mastermind Tasleem. The other arrested individuals are identified as Junaid, Aas Mohammad, Sethi, Asif, Moin, and Azim. Investigations revealed that the scam was facilitated through hawala channels, where the commission from the generated fake bills was funneled through untraceable means.
The fraud began when a local resident, Ashwini from Ratanpuri, reported that his Aadhar and PAN cards were used to form a fake company that was involved in generating fraudulent bills. On September 2, a complaint was filed at the Cyber Crime Police Station, which led to an investigation and the discovery of a massive GST theft scheme.
The gang used the documents of unemployed youths, whom they lured with job offers, to create fake KYC documents and subsequently form fake companies with bogus GST numbers. These companies were used to issue fake invoices, and the GST claimed was routed through hawala transactions rather than being deposited into legitimate business accounts.
While the police have arrested seven members, including key figures in the scam, the mastermind Tasleem is being investigated for his central role. His brother, Wahdat, who is also implicated, remains absconding. The gang is believed to have operated primarily by targeting scrap dealers and small traders who were in need of GST registration, further escalating the scale of their fraudulent activities.
Authorities have seized significant amounts of documentation related to the fake businesses and invoices. The police are actively working to identify further individuals involved and are seeking Wahdat, who remains on the run. The total value of the fraud continues to be calculated as investigations progress.