Police Say Fictitious Businesses and Forged Documents Were Used to Cause Major Tax Revenue Loss
Police in Uttar Pradesh’s Bulandshahr district have arrested three people, including a woman, in connection with an alleged ₹1.21 crore Goods and Services Tax fraud involving fake firms, forged documents and suspected misuse of digital identities.
According to investigators, fictitious business entities were allegedly created and used to generate fraudulent transactions, causing an estimated revenue loss of ₹1,21,85,878.36 to the government during the 2025–26 financial year.
A criminal case has been registered under relevant provisions of the Bharatiya Nyaya Sanhita, 2023, and the Information Technology Act, 2000. The allegations remain under investigation and have not yet been established before a court.
Three Accused Arrested in Ghaziabad
The arrests were made in Ghaziabad during a joint operation involving:
- Kakod Police Station
- Cyber Crime Cell
- Special Investigation Team
The accused have been identified as:
- Deepa Raghuvanshi
- Samar Chaudhary
- Surendra
Police allege that the three played important roles in creating and operating fake firms and preparing forged documents used in the suspected GST evasion scheme.
Fake Firms Allegedly Used for Fraudulent Transactions
According to the investigation, the accused allegedly established fictitious businesses and used fabricated records to misuse the GST registration and transaction system.
Police suspect that the firms were used to show non-genuine financial activity and facilitate fraudulent tax-related claims or transactions.
Investigators are examining whether other individuals, companies, accountants, consultants or facilitators were connected with the alleged network.
Electronic Devices Seized
During the operation, police reportedly seized:
- One laptop
- Two Apple smartphones
- One mobile phone box
- Purchase-related documents
The electronic devices are expected to undergo forensic examination.
Investigators believe the devices may contain evidence relating to:
- Creation of fake business entities
- Preparation of forged documents
- GST registrations
- Banking transactions
- Digital communications
- Identity-related records
Bank Accounts and GST Records Under Examination
Police are scrutinising bank accounts, GST registrations, transaction records and other documents to determine the full scale of the alleged fraud.
According to investigators, the accused made certain admissions during questioning. However, police said any such statements would need to be corroborated through documentary, financial and digital evidence.
Authorities are also investigating whether the alleged network operated for a longer period and whether the actual tax loss may exceed the amount identified so far.
Case Registered Under BNS and IT Act
The case has been registered at Kakod Police Station as Crime No. 471/2025.
The accused have reportedly been booked under Sections 318(4), 338, 336(3), 340(2) and 61(2) of the Bharatiya Nyaya Sanhita, along with Sections 66C and 66D of the Information Technology Act.
The allegations broadly concern cheating, forgery, identity misuse, criminal conspiracy and fraudulent use of computer resources.
The exact applicability of the provisions will be determined through the investigation and subsequent judicial proceedings.
Accused Sent to Judicial Custody
Following their arrest, the three accused were produced before a court and remanded to judicial custody.
Police said the investigation remains at a preliminary stage.
Authorities are examining whether similar fake firms were established in other districts or States and whether the accused were part of a wider organised network involved in tax evasion.
Digital Forensics Expected to Play Key Role
Former IPS officer and cybercrime expert Prof. Triveni Singh said technology-enabled financial offences often involve forged documents, stolen identities, digital accounts and complex banking transactions.
According to him, forensic examination of electronic devices, GST data, banking records and digital communications can help investigators identify beneficiaries and reconstruct the suspected fraud network.
He also stressed the importance of stronger monitoring, digital verification and timely enforcement to prevent misuse of fake firms within the tax system.
Further Investigation Continues
Police said financial, digital and documentary aspects of the case are being examined.
Further legal action may be initiated if investigators identify additional individuals, companies or intermediaries connected with the alleged fraud.