A gang involved in tax evasion of ₹ 2.75 crore by creating fake GST firms in Lucknow has been exposed. The Cyber Cell, Surveillance and Itaunja Police have arrested four accused, while the mastermind is absconding. Input Tax Credit (ITC) was sold to businesses through 16 bogus firms.
The GST fraud came to light on a complaint from the Lucknow Income Tax Department. A case was registered based on Assistant Commissioner State Tax Abhimanyu Pathak’s complaint regarding tax evasion through selling fake ITC via the fraudulent firm Swaraj Traders. Subsequently, four accused involved in tax evasion were arrested
DCP Crime Kamlesh Dixit said – Investigation revealed that Swaraj Traders, which showed sales of aluminium waste, ferrous waste, scrap, tube pipes, iron and steel after obtaining GSTIN on April 8, 2024, did not actually exist. The firm’s registration was done using a fake rental agreement.
Now read how the revelation happened…
Investigation revealed that a gang was operating by creating more than 15 fake firms like Swaraj Traders. The gang included Tabassum, aka Gulchama,n aka Jahnavi Singh, wife of Narendra Singh from Saketnagar Juhi Colony, Prashant Benjwal (30) from Kalyanpur Kanpur, Sumit Saurabh (35), son of Jitendra Kumar from Indira Nagar Sector-11, and Daulat Ram, son of Badlu Ram from Naubasta Kanpur city. In the financial year 2024-25, tax worth Rs 52 lakh 266 was sold to other firms through ITC.
Additional tax evasion of 19 lakhs
People’s Aadhaar, PAN, bank accounts, mobile numbers and addresses were collected through enticement. The gang leader, Ammar Ansari, would create fake rent agreements to obtain GST registration.
Fake GST-R1 was filed in the firm’s name to generate ITC. Prashant would create fake invoices and sell ITC for 1% commission.
The investigation also revealed firms named SS Galaxy and SS Enterprises. Their owner, Sumit Saurabh, has been arrested. GST evasion of Rs 19,01,242 was done through these firms.
As payment, two signed checks, one lakh in cash and one lakh were transferred to Swaraj Traders’ account. The debit card of that account was recovered from Prashant and Tabassum.
The investigation revealed firms named SS Galaxy and SS Enterprises. Their owner Sumit Saurabh has been arrested.
Now read who did what…
Police said – Daulat Ram is a labourer in Kanpur. Provided documents for the lure of 20 thousand rupees. Tabassum used to run a tiffin service earlier. Got involved in a fake firm registration scheme due to greed for more earnings. Prashant Benjwal, who was involved in the gang, was previously a cashier at Vishal Mega Mart.
Later quit his job and joined the gang. His job was to generate fake invoices and ITC. Tabassum and Prashant met at Vishal Mega Mart. Sumit Saurabh is the owner of the real firm, which used to buy bogus ITC for tax evasion.
Sitapur resident Ammar Ansari is the gang leader. He handled the entire process of fake rent agreements and GST registration. He has previously been jailed for GST fraud. He is currently evading police arrest. A search is underway to find him.
Formed gang due to greed for more money
During interrogation, Tabassum revealed that her first marriage was to Ejaz Ahmad, who had sold her. After that, she married Narendra in Kanpur, but left him in 2017 after learning that he was already married.
In 2020, she met Prashant, a cashier at V Mart in Kanpur. Prashant’s salary was only 10 thousand rupees. Both started living together and started a tiffin service, but due to low income, they planned to earn more money in less time. During this time, both contacted Ammar Ansari and planned to sell ITC through fake GST.
Accused used to take one lakh rupees per firm
DCP said – Tabassum and Prashant would look for people who would provide their Aadhar cards, PAN cards, mobile numbers and bank accounts for creating fake firms.
These documents were handed over to Ammar. Through which fake GST was registered. Tabassum and Prashant would receive one lakh rupees for each firm. Daulatram was made the owner of one of these firms.
