UP’s Biggest GST Fraud: SIT Investigation Uncovers Major Scam

GST Fraud in UP: The biggest case of GST evasion in Uttar Pradesh has been exposed. The investigation into 535 firms found in the diary of Meerut's notorious mastermind Ikhlaq has been completed. The State Tax Department found that through 335 fake firms, a fraudulent turnover of ₹5478 crore was created, leading to a total GST evasion of ₹989 crore. This revelation highlights the depth and organised nature of the tax evasion network in Uttar Pradesh.

200 Out of 535 Firms Found to be Completely Fake

During the investigation, officials discovered that 200 out of the 535 firms had no record of any actual transactions. There was no stock, no transportation records, and no tax payments made by these entities. This significant disclosure came to light during a special four-day investigation led by Additional Commissioner Grade-1 Ashok Kumar Singh, after evidence gathered by the SIT was handed over to the State Tax Department.

Fake Business of ₹5478 Crore Shown Across the Country

The State Tax Department reported that 335 firms associated with A.K. Enterprises showed transactions worth ₹5478.35 crore in various states across the country. While 144 of these firms had already been investigated, the detailed probe into the remaining ones exposed the entire network's structure. The department described this as one of the largest GST frauds in India to date.

Maximum Connections from Delhi and Gujarat, Big Traders Also Under Suspicion

The investigation also revealed that several large firms from Delhi and Gujarat had used this network to commit significant tax evasion. Many companies generated bills worth crores of rupees through these fake firms, causing substantial losses to the government. This network spanned multiple states, and its layers are now being uncovered.

Checking of Two Trucks in Moradabad Uncovered 144 Fake Firms

On October 24 and 25, the State Tax Department seized two trucks loaded with iron in Moradabad. Investigations revealed that 144 fake firms were registered under two mobile numbers linked to these trucks. Over ₹400 crore in GST was evaded through these firms. This action brought the larger network to light, following which an SIT was formed to investigate the entire case.

Ikhlaq and His Gang's Roots Exposed During SIT Interrogation

The SIT arrested mastermind Ikhlaq and his associate Ittehat Alam alias Danish Kabadi on November 22. However, six more key members of this gang are reportedly still at large. Two FIRs have been registered by the State Tax Department, and one FIR has been filed in Lucknow in this case. A total of nine businessmen and two firms have been named. Officials stated that a nationwide campaign will continue to dismantle the entire network.

State Tax Department Vigilant, Claims to Dismantle Entire Network

Additional Commissioner Grade-1 Ashok Kumar Singh stated that the investigation into 335 firms has revealed the biggest GST evasion of ₹989 crore to date. He added that the department is in contact with the SIT and the network spread across the country will be dismantled soon. Further major revelations are anticipated in the coming days.