Advocate, Associate Arrested for Running Fake GST Firms and Issuing Bogus Bills
New Delhi, June 2025: In a major crackdown on GST fraud, the Delhi Police have arrested two individuals, including an advocate, for allegedly operating a racket of fake GST-registered companies and generating bogus bills to facilitate fraudulent GST settlements.
The scam came to light after a Sagarpur resident filed a complaint with the Cyber Police Station of South West Delhi. According to Deputy Commissioner of Police (South West) Amit Goel, the complainant discovered that two GST numbers had been fraudulently issued in his name without his knowledge or consent while he was applying for a GST registration using his PAN card. Further investigation revealed that these GST numbers were being used to run different trading firms, and a SIM card had also been issued using his Aadhaar details. The complainant stated that these fake companies were involved in high-value transactions, leading to significant reputational and financial harm.
Police Launch Technical Surveillance, Arrest Two
Following the complaint, a case was registered, and police initiated a detailed investigation. Using advanced technical surveillance and tracking tools, the police team gathered crucial leads related to the fraudulent GST accounts. Location tracking efforts led officers to Panipat and other areas in the National Capital Region (NCR).
During a raid in Panipat, police arrested the first accused, a 27-year-old man who had been working under an advocate based in Burari, Delhi. Interrogation revealed that the man, a Class 12 pass-out, was responsible for handling the technical operations of the fake GST firms, including logging into bogus accounts, modifying credentials, and generating fake invoices.
Advocate Mastermind Tracked to Uttar Pradesh
Based on information from the first arrest, police tracked down the second accused—the 45-year-old advocate from Burari. He had fled to Kairana in Uttar Pradesh after learning about the arrest of his associate but was eventually apprehended by the police.
According to investigators, the duo was involved in creating fake GST firms by misusing genuine identity documents, including PAN cards, Aadhaar cards, rent agreements, SIM cards, and email IDs. The accused would purchase firm details, login credentials, and supporting SIM cards from a network of suppliers in Delhi for Rs 25,000 to Rs 30,000 per firm.
Once in control of these details, they would update the mobile numbers and email IDs linked to the GST accounts and start operating them. Using specialized software, they generated and uploaded fake invoices to the GST portal, facilitating fraudulent GST settlements and evading taxes.
Police Continue Crackdown on GST Fraud
The arrests have exposed a well-organized network involved in GST fraud, highlighting the misuse of digital identities and loopholes in the GST registration process. Authorities are now expanding their investigation to identify other members of the racket and further strengthen the security checks in the GST registration and verification processes.