Major GST Fraud Network Busted in Lucknow with Over 15 Fake Firms
In a significant crackdown on Goods and Services Tax (GST) fraud, a coordinated team from Lucknow's Cyber Cell, Surveillance Unit, and Itaunja police has dismantled an organized criminal network that established more than fifteen fictitious companies. This elaborate scheme was designed to generate and illegally sell fraudulent Input Tax Credit (ITC), resulting in a substantial tax loss estimated at over Rs 2.75 crore for the government.
Arrests Made and Mastermind on the Run
Law enforcement authorities have successfully apprehended four individuals connected to this sophisticated fraud operation. However, the alleged mastermind, identified as Ammar Ansari from Sitapur, remains at large and is currently evading capture. Police investigations reveal that Ansari has a prior criminal history, having been previously incarcerated in another GST fraud case. He is described as the key operator who managed the fraudulent GST registrations and orchestrated the generation of fake ITC.
DCP (Crime) Kamlesh Dixit provided detailed insights into the gang's modus operandi. The criminals specifically targeted economically disadvantaged and financially vulnerable individuals, offering them monetary incentives ranging from Rs 10,000 to Rs 20,000. In exchange for these payments, the victims surrendered copies of their crucial personal documents including Aadhaar cards, PAN cards, bank account details, mobile numbers, and various address proofs.
Sophisticated Fraud Methodology Uncovered
"Using these fraudulently obtained documents, the accused prepared forged rent agreements to secure GST registrations for non-existent firms," explained DCP Dixit. "Once these shell entities were officially registered, they began generating bogus ITC through fabricated GST returns, specifically GSTR-1 forms. The criminals created entirely fictitious invoices and e-way bills to simulate non-existent transactions in various industrial materials including aluminium scrap, ferrous waste, iron, steel, tubes, and pipes."
The fraudulent ITC generated through this elaborate scheme was then sold to legitimate businesses at a commission rate of approximately 1%. This enabled these businesses to illegally offset their actual tax liabilities, creating a cascading effect of tax evasion throughout the supply chain.
Investigation Origins and Network Exposure
The entire racket came to light following a formal complaint lodged by Abhimanyu Pathak, Assistant Commissioner of State Tax (Division-16, Lucknow), on September 2, 2025. The complaint specifically targeted Swaraj Traders, which subsequent investigations revealed was a completely non-existent entity.
"Our probe determined that Swaraj Traders had no physical existence whatsoever but had fraudulently generated and sold bogus ITC worth approximately Rs 52 lakh during the financial year 2024-25," stated DCP Dixit. Further meticulous scrutiny by investigators uncovered a much larger network of fake firms operating on identical fraudulent principles, indicating a widespread and organized criminal enterprise.
Arrested Accused and Ongoing Manhunt
The four individuals currently in police custody include:
- Tabassum, also known as Gulchaman or Janhvi Singh, a resident of Kanpur
- Prashant Benjwal, a 30-year-old native of Kanpur
- Sumit Saurabh, a 35-year-old businessman based in Lucknow
- Daulat Ram, a 50-year-old factory worker from Kanpur
Meanwhile, Ammar Ansari, believed to be the operational head who managed the GST registrations and ITC generation processes, continues to evade authorities. Police teams are conducting intensive raids at multiple locations across the region in an effort to trace and apprehend the fugitive mastermind.
Law enforcement officials have characterized this case as one of the most significant organized GST fraud busts in the region in recent months, highlighting the sophisticated nature of tax evasion schemes that target India's GST system. The investigation remains ongoing as authorities work to uncover the full extent of the criminal network and recover the substantial tax revenue lost to this elaborate fraud operation.
