In a significant breakthrough, the Uttar Pradesh police uncovered a large-scale GST fraud syndicate, arresting seven individuals in Muzaffarnagar on Tuesday. The group had been operating 48 shell companies to issue fake GST invoices amounting to Rs 900 crore, resulting in a revenue loss of approximately Rs 135 crore to the government.
The accused, which included four scrap business owners, were allegedly issuing fraudulent GST bills without any actual movement of goods. The suspects, identified as Tasleem, Asif, Junaid, Asu, Moein, and Azeem, were apprehended following an extensive investigation led by SP (Dehat) Aditya Bansal. Authorities are now tracing additional individuals linked to the scam.
Muzaffarnagar SSP Abhishekh Singh revealed that the gang exploited stolen or misused KYC details to create fake companies and bank accounts, which were then used to generate false GST invoices. The 48 shell companies involved in the scheme issued GST bills totaling Rs 925 crore, leading to a reported revenue loss of Rs 135 crore.
The syndicate’s fraudulent activities had been under investigation for some time, and further inquiries are underway to reveal the full extent of the operation and other individuals involved.