Bogus Firm in Bareilly Accused of Evading ₹72.84 Lakh GST; FIR Registered

Bogus Firm in Bareilly Accused of Evading ₹72.84 Lakh GST; FIR Registered

A major GST evasion case has surfaced in Bareilly after state tax officials uncovered a fake business entity accused of issuing forged invoices and unlawfully passing input tax credit amounting to nearly ₹72.84 lakh. Following an internal inquiry, the State Tax Department lodged an FIR at Baradari police station, opening a broader investigation into a suspected network of shell firms operating across the region.

Forged Documentation Used to Secure GST Registration

Investigators found that the entity—registered as Salim Traders—secured GST credentials using falsified documents and an address that did not exist. Although the firm claimed to operate from Bareilly’s Kalibadi locality, officials discovered no trace of commercial activity at the listed site.

The business was registered under the name of Nagma, a Ghaziabad resident whose identity documents were allegedly misused. Tax officials report that in April 2021, the firm uploaded fabricated invoices showing non-existent supplies worth ₹2.79 crore and passed ITC of ₹50.25 lakh. A similar pattern followed in May 2021, involving bogus invoices of ₹1.25 crore and undue ITC of ₹22.58 lakh.

Authorities say these activities caused a direct revenue loss of ₹72.84 lakh to the government.

Organised GST Fraud Network Under the Scanner

The case has led investigators to suspect a structured network operating multiple scam firms across Bareilly district. Many GST registrations appear to be obtained using names of low-income individuals or labourers who are unaware their credentials are being exploited.

Officials believe handlers based in Delhi and Gujarat coordinate large-scale billing frauds—creating inward and outward invoices purely on paper to transfer ineligible ITC and falsely claim refunds. No physical goods are ever manufactured, transported or sold.

Repeat Patterns Seen in Earlier Investigations

Past cases from the same police station reveal a similar modus operandi. The firm Thakur Enterprises, allegedly operating from a forged address, claimed supplies worth over ₹2,441 lakh and passed ITC of ₹439 lakh without any physical stock. Verification revealed tenancy documents and electricity bills were fabricated.

Similarly, Murti Enterprises is accused of securing GST registration with fake rent agreements and evading nearly ₹149 lakh in taxes.

Officials say the repetition of forged documentation and dummy invoicing indicates a coordinated GST abuse model designed to exploit gaps in the registration system.

Accused Absconds as Police Expand Financial Probe

With more than 60 suspected shell firms linked to the same fraud ring, several individuals are now absconding. Raids, verification drives and data audits continue across multiple districts.

SP City Manush Parikh stated that the crime branch is analysing GST filings, bank statements, digital trails and identity submissions. Arrests are expected once financial links and beneficiary accounts are fully mapped.

Authorities indicated that additional FIRs may follow as the investigation widens and more entities come under scrutiny.

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