Uttar Pradesh Special Task Force (STF) has arrested two Delhi-based B-Com graduates allegedly involved in creating a network of bogus firms that facilitated fraudulent Input Tax Credit (ITC) claims and caused revenue losses worth crores of rupees to the government.
The arrested accused, identified as Saurabh Agrawal (35) and Ajit Kumar (32), were carrying rewards of Rs 50,000 each and had been absconding in a high-profile GST fraud case registered at Kotwali Khalilabad police station in Sant Kabir Nagar district.
Both were arrested from the Hari Nagar area of West Delhi following a targeted intelligence-led operation by the STF.
Officials said the two men, who were engaged in accountancy-related work in Delhi, allegedly used their educational background and knowledge of taxation procedures to build and operate a network of shell companies that existed largely on paper but generated massive volumes of fake GST transactions.
Arrest in Delhi After Months of Pursuit
According to STF officials, the case relates to Crime No. 577/2025 registered under various sections of the Bharatiya Nyaya Sanhita (BNS), the Information Technology Act and Section 132 of the GST Act.
The investigation had earlier led to the arrest of two accused, Sandeep Kumar and Aman Upadhyay, on February 12, 2026. However, Saurabh Agrawal, Ajit Kumar and two other associates managed to evade arrest. Following their disappearance, rewards of ₹50,000 each were announced for information leading to their capture.
Deputy SP, STF, Pramesh Shukla, said the accused were part of a larger interstate network involved in obtaining GST registrations using forged and fabricated documents. Once the shell entities were created, they allegedly generated fake sales invoices and e-way bills without any actual movement of goods.
“These fabricated transactions were then used to provide fraudulent Input Tax Credit benefits to genuine business establishments seeking to reduce their tax liability,” said Shukla.
The accused allegedly prepared fake GST returns and uploaded fabricated transaction details on the GST portal, thereby creating the appearance of legitimate commercial activity.
“The firms existed largely on paper. Fake invoices were generated without any real purchase or sale of goods, enabling businesses to claim tax credits unlawfully,” an STF official said.
STF revealed that the syndicate employed a sophisticated “circular trading” mechanism to conceal the fraud.
“To make transactions appear genuine, money corresponding to invoice values was routed through bank accounts of the bogus firms. The funds were later withdrawn in cash or moved through multiple shell entities in a circular pattern, creating an artificial trail of commercial transactions,” the STF added.
The STF said the accused had access to login credentials, passwords and OTP authentication systems linked to several firms. This allowed them to operate bank accounts, file GST returns and conduct financial transactions remotely without attracting immediate suspicion.
Officials believe the network was spread across Delhi and adjoining districts and involved numerous shell entities that were used to rotate transactions and inflate business turnover figures.
The present case is linked to a firm identified as Yadav Enterprises, which investigators believe was among the entities used for generating fake invoices and evading GST liabilities.
Authorities suspect that the network enabled tax evasion and wrongful ITC claims running into several crores of rupees, causing significant losses to the government exchequer.
Investigators are now examining financial records, GST filings, bank transactions and digital evidence recovered during the probe to identify other beneficiaries of the alleged fraud.
Source from: https://timesofindia.indiatimes.com/city/lucknow/2-delhi-bcom-graduates-held-by-up-stf-in-multi-state-gst-fraud-network-accused-of-facilitating-crores-in-tax-evasion/articleshowprint/131466618.cms?val=3728
