Kanpur authorities have intensified action against suspected bogus businesses allegedly involved in fraudulent claims of Input Tax Credit (ITC), with multiple FIRs registered across the city. According to complaints filed by State Tax Department officials, the cases involve alleged irregular claims exceeding ₹15.40 crore across several firms operating in different police station jurisdictions.
The investigation covers alleged GST irregularities in Kidwainagar, Govindnagar, Kalyanpur and Panki. Officials claim that some businesses used non-existent addresses, allegedly manipulated registration documents or recorded purchases and sales that did not correspond to genuine commercial activity.
In a separate case registered at Bajaria police station, another firm has been accused of improperly claiming more than ₹19.85 lakh in ITC.
Non-Existent Business Address in ₹11.50 Crore Alleged Fraud
One of the largest cases involves Balaji Traders, whose operator, Munendra Singh, has been named in an FIR registered at Kidwainagar police station.
According to the complaint filed by State Tax Officer Shuchi Rai, the firm had registered its business address at Star Property Apartment in Nayapurwa, M Block, Kidwainagar. However, departmental officials allegedly could not locate the declared business premises during verification.
The electricity bill submitted as part of the GST registration process was also suspected of being tampered with, according to the complaint.
Officials allege that Balaji Traders claimed more than ₹11.50 crore in bogus ITC during the financial years 2025–26 and 2026–27 by reporting fictitious inward supplies. The police will examine the firm's registration details, supporting documents and transaction records as part of the investigation.
Singhani Enterprises Accused of Claiming ₹3.90 Crore in ITC
A separate FIR was registered at Govindnagar police station against Harshit Singhani, operator of Singhani Enterprises in Ratanlalnagar.
Assistant Commissioner Kavita Srivastava filed the complaint, alleging that the firm recorded purchases from Maurya Traders and Ramvilas Traders. However, officials reportedly found no business operating at the declared addresses of the suppliers.
The department alleges that fabricated paper transactions were used to claim nearly ₹3.90 crore in improper ITC. Investigators are expected to examine the purchase records and the identities of the entities shown in the firm's GST filings.
HI Traders Faces Allegations Over ₹1.58 Crore ITC
At Kalyanpur police station, Deputy Commissioner Vinay Kumar Gautam lodged a complaint against Imran Hussain, operator of HI Traders and a resident of Khyora Lakhanpur.
The firm was registered for trading in iron scrap, flat-rolled iron products, wire and cement. According to the departmental complaint, it allegedly availed ₹20.99 lakh in ITC from one entity and ₹1.03 crore from another.
Officials also alleged that the firm claimed approximately ₹34 lakh in tax credits despite having zero ITC in April 2025. The total alleged ITC irregularity attributed to HI Traders was reported at ₹1.58 crore.
Two Panki Firms Also Named in FIRs
The State Tax Department initiated action against multiple businesses in the Panki area.
An FIR was registered against Raunak Sharma, a resident of Jaipur and operator of MS RS Services. Deputy Commissioner Sushma Singh alleged that the firm claimed approximately ₹3.85 crore in fraudulent ITC. Its registered business address was reportedly listed as a boys' paying guest hostel in Ratanpur Colony, where officials allegedly found no office belonging to the firm.
Another FIR named Sanjeev Tiwari, operator of Balaji Enterprises, over an alleged ₹2.51 crore ITC fraud. The firm reportedly showed purchases from four different businesses.
A separate report was also lodged at Panki police station against the operator of M/s Real Enterprises. The supplied report does not specify the amount involved in this case.
Imran Traders Booked in Separate ₹19.85 Lakh Case
In another investigation, Bajaria police registered a case against the operator of Imran Traders for allegedly claiming more than ₹19.85 lakh in improper ITC.
The firm was registered under GST on February 9, 2025. Its filings reportedly showed purchases worth ₹1,10,32,114 from Rahul Enterprises during financial year 2025–26, against which it claimed ₹19,85,780 in ITC.
However, according to the complaint, GST portal records did not show corresponding purchases by Rahul Enterprises. During an inspection on September 12, 2025, officials also allegedly found that Imran Traders did not exist at its declared address on Malviya Road.
Bajaria Station House Officer Arvind Sharma confirmed that a case involving allegations of fraud and the use of forged documents had been registered.
GST Verification and Financial Investigation Underway
Police and tax officials are now examining GST registration details, invoices, purchase records, declared business locations and financial transactions associated with the firms.
The cases highlight the importance of verifying supplier credentials and maintaining reliable documentation when claiming Input Tax Credit. Businesses should regularly reconcile purchase invoices with GST portal records, review supplier compliance and maintain evidence of genuine transactions.
Organisations seeking stronger financial oversight can explore GST consultant services in India for assistance with GST compliance, return reviews and related documentation.
The allegations against the named operators and firms remain subject to investigation. The registration of FIRs does not establish guilt, and the final findings will depend on the evidence examined by the authorities.