Rs 1 cr ITC fraud busted in Lucknow

Lucknow: Crime Branch of Lucknow Police busted a GST fraud racket involving fake firms and bogus transactions worth over Rs 1.3 crore, officials said on Tuesday. One accused has been arrested.

“Jobless graduate Ravinder Giri (35), resident of Lakhimpur Kheri, was arrested by a joint team of Rahimabad police and cyber/surveillance unit. Three mobile phones and cash were recovered from him,” said Kiran Yadav, Additional DCP (Crime).

Police said the gang created fake GST firms using forged documents and identities of random individuals and targeted the poor and vulnerable, luring them with promises of facilitating Mudra loans. They collected their Aadhaar cards, PAN details, bank documents and mobile numbers and misused them to register shell firms.

ADCP crime said fake rent agreements and electricity bills were prepared to complete GST registrations. “These firms were used to generate bogus invoices and e-way bills, projecting fake transactions as legitimate. The accused sold fraudulent Input Tax Credit (ITC) to companies in exchange for commissions, causing significant loss to govt exchequer,” she added.

“The accused used multiple SIM cards issued in others’ names to operate these fake entities and carry out transactions. The arrested has confessed to the crime during interrogation,” police said.