Kanpur Crime Branch Exposes Major Fake GST Racket, Arrests CA Mastermind
In a significant crackdown on financial fraud, the Crime Branch in Kanpur has exposed a sophisticated fake GST gang that operated by creating non-existent firms using forged documents. This elaborate scheme resulted in massive losses worth crores of rupees to government revenue through the misuse of Input Tax Credit (ITC).
How the Fraud Was Executed
The gang obtained GST registration numbers by establishing fake and non-existent firms with completely fabricated documentation. They then generated fraudulent tax invoices and e-way bills without any actual purchase or sale of goods, systematically exploiting the ITC mechanism to divert government funds.
During a press conference held on Sunday, DCP Crime Shravan Kumar Singh revealed that the gang carried out fraud worth crores of rupees that extended from Kanpur to several districts across Uttar Pradesh. Hundreds of FIRs have been registered across the state in connection with similar fraudulent activities.
The Investigation Unfolds
The investigation began when information from the State Tax Department brought to light a case of fake GST registration under the name of Apoorva Trading Company in the Kalyanpur police station area. An FIR was registered at Kalyanpur police station, and the investigation was subsequently transferred to the Crime Branch for further examination.
When Crime Branch officials visited the declared business location at Mehrban Singh Ka Purwa, they found no actual business activity taking place. Local residents confirmed that neither was any business operated from that address nor did the concerned person live there. The registered mobile number associated with the firm was discovered to be permanently switched off.
Through meticulous investigation, it became clear that Apoorva Trading Company was entirely bogus. The firm had been used to generate fake tax invoices and e-way bills by showing outward supply to other similarly fabricated companies, creating a web of fraudulent transactions.
Massive Financial Impact
During the financial year 2019-20 alone, the accused committed tax evasion exceeding Rs 2.66 crore. This substantial amount included approximately Rs 2.54 crore in evaded taxes and an additional Rs 12.71 lakh in penalties that were rightfully owed to the government.
Arrests and Evidence Recovery
Police successfully arrested CA Kamal Gaurav Sahu, a resident of Barra Adarsh Nagar, who has been identified as the mastermind behind the operation. They also apprehended his associate, Etisham Husain, from Rawatpur. Both individuals were presented in court and subsequently sent to jail as the investigation continues.
Authorities have recovered substantial evidence from the accused, including:
- Multiple bank cards
- Android and iPhone mobile devices
- GST registration documents
- Fraudulent e-way bills
- Fake tax invoices
- Other important documents related to the scheme
The arrests were made possible through technical investigation methods, with police tracking the suspects based on their internet IP numbers. This case highlights the increasing sophistication of financial crimes and the corresponding technological methods required to combat them effectively.
The successful bust of this fake GST gang represents a significant victory for law enforcement against organized financial fraud that undermines the nation's tax system and revenue collection.
