The Uttar Pradesh Special Task Force (STF) has arrested four people in a ₹100 crore GST evasion case involving shell firms and fake invoices, while a Central GST inspector named in the probe is currently untraceable, according to a Times of India report.
The case has been registered at the Kavi Nagar police station in Ghaziabad after investigators uncovered fresh evidence pointing to official collusion in the alleged tax fraud.
How the GST Evasion Racket Worked
Investigators said the syndicate created bogus companies and generated fake e-way bills and invoices to illegally claim input tax credit (ITC), causing an estimated loss of nearly ₹100 crore to the exchequer.
The STF arrested four accused on Friday, Delhi-based scrap dealer Hardeep Singh, also known as Prince, along with Jitendra Jha, Punit Agrawal, and Shivam Singh.
GST Inspector Named, Now Absconding
During the probe, the STF named Central GST inspector Mohit Agrawal as an accused. Officials said evidence suggests he allegedly provided departmental support to the syndicate in exchange for bribes and helped reinstate suspended firms.
“His role has clearly emerged. He was an active part of the syndicate,” a senior STF officer told TOI. The inspector is currently untraceable, officials said.
Fake Firms, Bribes and Digital Trail
Investigators also flagged the role of Alok, a Haryana-based facilitator who allegedly supplied fake firms to the group for a commission. One such entity, Adon Automobile, linked to Punit Agrawal, was allegedly reinstated after suspension through the intervention of the GST officer, who reportedly accepted ₹40,000 for the favour.
The STF claims the inspector collected lakhs of rupees by offering similar assistance to multiple firms. WhatsApp chats recovered from one of the accused allegedly detail payments and manipulation of official records.
Probe Widens, More Arrests Expected
The STF said the investigation is ongoing and more arrests are likely as authorities widen the probe to uncover the full extent of the GST evasion network.
The case has raised serious questions over internal controls and oversight in GST enforcement. Investigators said action will be taken against all those involved, including officials, as the STF continues to widen the probe.
Source: ET