₹100-cr GST evasion racket: UP STF nabs key operative in Pune

The Uttar Pradesh Special Task Force (STF) has arrested a key operative of an interstate GST evasion racket that allegedly caused a revenue loss of over ₹100 crore by generating fake invoices and e-way bills through bogus firms, officials said on Sunday.

Acting on intelligence inputs, an STF team from Lucknow reached Pune on Saturday and tracked down the accused on Sunday. He was arrested from Viman Nagar in Pune, Maharashtra, at around 8:15 am on Sunday. The accused was identified as Keshwani Abbas Hussain Ramzan Ali.

According to officials, he was part of an organised network that created shell firms using forged documents and issued fake invoices and e-way bills to genuine businesses. These were used by beneficiary firms to fraudulently claim input tax credit (ITC) without any actual trade, causing substantial losses to the government exchequer.

The STF recovered two laptops, two mobile phones and a passport from the accused. Investigators said he, along with associates identified as Raees and Muntazir, operated from Maharashtra and Gujarat, handling accountancy-related work while running the fraudulent network.

Officials said the modus operandi involved obtaining GST details, such as registration numbers, type of goods and transaction values, from genuine firms through digital platforms. Using pre-created bogus firms, the accused generated fake invoices and uploaded fabricated GST returns on the GST portal to legitimise transactions.

To lend a semblance of authenticity, the network used circular trading through bank transactions, routing money through bogus firm accounts and returning it via cash withdrawals or layered transfers. Officials said the accused also had access to login IDs, passwords and OTPs of multiple firms, enabling them to manipulate filings and financial transactions.

Preliminary investigation revealed that several bogus firms were registered across states, including Uttar Pradesh, Gujarat, Maharashtra, Madhya Pradesh, Delhi and Karnataka. Some were also registered at Lucknow addresses using forged documents.

The arrest is linked to a case registered at Indira Nagar police station in Lucknow under relevant sections of the Bharatiya Nyaya Sanhita (BNS). STF officials said further investigation is underway to identify other members of the syndicate and trace beneficiary firms, adding that efforts are on to arrest the remaining accused and widen the probe.

Source from: https://www.hindustantimes.com/cities/lucknow-news/100cr-gst-evasion-racket-up-stf-nabs-key-operative-in-pune-101774197837354.html