LUCKNOW The Lucknow Crime Department busted an organised GST fraud community allegedly concerned in creating faux corporations, acquiring fraudulent registrations and facilitating tax evasion via bogus enter tax credit score (ITC) claims. A key accused was arrested on Friday in reference to a case registered by the state tax division, with investigators uncovering suspicious transactions value practically ₹2.5 crore and greater than 100 linked registrations.
In response to officers, the accused would hire outlets within the Itaunja space and use these addresses to acquire GST registrations. These corporations allegedly existed solely on paper and have been used to generate faux invoices and fraudulent tax credit.
Extra deputy commissioner of police (crime) Kiran Yadav mentioned the legal antecedents of the arrested accused are additionally being verified from different districts, whereas additional authorized motion within the case is continuous.
The case stems from an FIR registered at Itaunja police station on August 27, 2025, following a grievance by Abhimanyu Pathak, assistant commissioner, state tax, Lucknow. The FIR was lodged beneath Sections 419, 420, 467, 468 and 471 of the Indian Penal Code after authorities discovered {that a} agency had allegedly obtained GST registration utilizing solid hire and lease paperwork and was claiming inadmissible ITC advantages, leading to income loss to the federal government.
In the course of the investigation, the title of Buddhi Prakash Awasthi, 35, a resident of Sitapur, who was at present residing in Faizullaganj, Lucknow, surfaced. He was arrested on Friday with the help of the crime department’s Cyber Cell, Surveillance Unit, and Itaunja police.
Crime department officers mentioned the investigation expanded after technical evaluation of cellular numbers linked to the suspected GST fraud. Examination of 10 IMEI numbers led investigators to 225 extra cellular numbers. Additional scrutiny revealed that 107 of those numbers have been linked to registrations of various corporations and firms, indicating the existence of a bigger organised community working via a number of identities and entities.
Investigators mentioned the probe additionally established that ‘Altamas Merchants’ (agency) had no actual existence regardless of being registered beneath GST and conducting substantial monetary transactions.
Throughout interrogation, police discovered that the accused and his associates allegedly operated a number of shell entities, together with Altamas Merchants, Kumar Merchants, Supreme Enterprises and Buddha Enterprises. Investigators additionally got here throughout one other agency, Daylight Enterprises, in the course of the course of the probe.
Police mentioned the gang’s modus operandi concerned concentrating on poor and financially weak people. The accused and his associates allegedly provided cash to acquire Aadhaar playing cards, PAN playing cards, checking account particulars and cellular numbers from such individuals.
Utilizing these paperwork, the gang allegedly ready solid hire agreements, electrical energy payments and different supporting information to safe GST registrations. As soon as registered, faux invoices have been generated on-line to assert fraudulent ITC advantages and evade GST funds.
Officers mentioned related GST fraud modules had been detected earlier, the place unsuspecting individuals have been lured with guarantees of Mudra loans and their paperwork have been later used to ascertain faux corporations.
Investigators discovered {that a} checking account operated within the title of Altamas Merchants recorded transactions value roughly ₹2.25 crore. The cash was allegedly routed via a number of financial institution accounts as a part of the community’s operations.
Crime Department officers mentioned the general monetary path linked to the faux corporations and related accounts has crossed ₹2.5 crore. Efforts are underway to freeze the financial institution accounts concerned whereas investigators proceed to hint extra beneficiaries and transactions.
In the course of the arrest, police recovered a number of banking and digital paperwork allegedly used within the fraud. The seizure included debit playing cards, cellphones, a cheque e-book, a SIM card and different information linked to the operation.
Officers mentioned additional investigation is underway to determine different members of the community, confirm extra corporations and study the whole extent of the GST evasion racket.
