Noida Police Arrests Key Suspect in Major GST Fraud Scheme
In a significant crackdown on financial crime, the Noida police have apprehended a 25-year-old man linked to a gang accused of orchestrating a massive tax evasion scheme valued at nearly Rs 2 crore. The arrest, made from Sector 62 on Thursday, marks a crucial step in dismantling a sophisticated network involved in fraudulent GST activities.
Details of the Arrest and Accused
The arrested individual, identified as Rohan Gupta, a resident of Govindpuri, Delhi, was taken into custody following an intensive investigation. Police recovered one mobile phone, a tablet, and two counterfeit Aadhaar cards from his possession at the time of the arrest. Authorities are actively pursuing other members of the gang, who remain at large.
Modus Operandi of the Fraudulent Gang
The gang's illicit operations began on July 29, 2024, when they secured a GST registration number through a fictitious entity named KS Enterprises. Subsequently, they established several additional bogus firms, including Alam Enterprises, CP Traders, and Tradeography. During the financial year 2024-25, without conducting any genuine business transactions, the gang filed fraudulent Integrated Goods and Services Tax (IGST) claims amounting to Rs 1.7 crore.
To conceal their activities, the gang fabricated false inward supplies and generated corresponding outward supplies to other companies. They illegally passed on bogus IGST Input Tax Credit (ITC) to a supply firm known as CP Trade. Moreover, through KS Enterprises, they declared invoices for supplies from a non-existent firm called Tradeography, relying solely on forged documentation. This elaborate scheme enabled them to claim forged ITC against these fabricated inward supplies.
Legal Proceedings and Investigation
On October 25, 2025, a state tax officer registered a formal case under sections 318(4) (cheating), 338, 336(3), and 340 (all pertaining to forgery) of the Bharatiya Nyaya Sanhita (BNS) at the Sector 58 police station. Following this, police launched a comprehensive investigation, employing electronic surveillance and leveraging local intelligence to track down the suspects. Gupta's arrest from Chhota D Park was the result of these sustained efforts.
The case highlights ongoing challenges in combating tax fraud and underscores the importance of vigilant enforcement to protect the integrity of India's GST system. Authorities continue to search for the remaining gang members to ensure full accountability for the financial losses incurred.
