One Bank Account, 16 Firms: How a ₹500-Crore GST Scam Unravelled in UP

What initially appeared to be routine GST filings soon turned into one of Uttar Pradesh’s largest tax fraud investigations. The state Special Task Force (STF) has uncovered a sprawling racket in which 16 different firms were operated through a single bank account, enabling an estimated ₹500-crore GST evasion.

According to investigators, the network was controlled from Meerut but relied on a Yes Bank account in Delhi’s Janakpuri area. Between January and October 2023 alone, transactions worth ₹268 crore passed through this account - a volume that should have triggered multiple red flags but went undetected.

How the racket surfaced

The scam came to light during a deeper probe into suspicious GST returns. STF officers found that the same bank account had been linked to multiple firms registered under different names. Each firm existed largely on paper, backed by forged rent agreements, fabricated electricity bills and pre-activated SIM cards obtained using fake identities.

Identity documents of unsuspecting individuals were allegedly misused to create these shell entities, allowing the operators to issue fake invoices and unlawfully claim Input Tax Credit (ITC).

Bogus firms, one financial artery

Among the firms identified were GP Traders, Harsh Traders, RK Enterprises, Rahul Enterprises, Patel Enterprises and several others - all routing their financial activity through the same account. This single-point funnel allowed the gang to rotate funds, inflate turnover figures and disguise fraudulent billing as legitimate business activity.

Experts say such cases highlight how weak internal checks can undermine the tax system. Much like businesses rely on auditing services in india to independently verify accounts and detect anomalies, robust financial scrutiny within banking and GST frameworks is critical to prevent large-scale abuse.

STF action and arrests

On December 26, the STF arrested eight key accused, including Dilshad, Ramesh Patel and Ankur Tiwari. Officials allege that the group played defined roles - from arranging documents and registering firms to managing invoices and banking operations.

Authorities have confirmed GST evasion exceeding ₹500 crore so far, with more firms and accounts now under examination.

More names, bigger questions

Investigators believe the racket may involve additional facilitators, including those who helped with documentation, banking processes or technical GST filings. Parallel reviews are also underway to determine why such high-value transactions failed to trigger alerts within banking and tax monitoring systems.

As officials trace the money trail and prepare further arrests, the case has become a stark reminder that financial fraud at this scale is rarely accidental - it thrives where oversight breaks down and verification systems fall silent.