Kanpur Police Crack Rs 250 Crore GST Fraud Racket

Kanpur police uncovered a massive GST fraud scheme using stolen identities to create fake firms. Rs 250 crore transactions were routed through these shell companies. Arrests were made, with more suspects on the run. Victims, including students and workers, were tricked into providing personal documents. Investigations continue.

Kanpur police have exposed an elaborate GST fraud racket involving the misuse of identity documents to establish fake companies and facilitate transactions totaling Rs 250 crore. This revelation emerged after a tip-off from an unsuspecting victim whose credentials were exploited without consent.

The fraudulent network targeted vulnerable individuals, including e-rickshaw drivers and students, by promising loans. The crooks amassed personal documents like PAN and Aadhaar cards under false pretenses to forge firms, secure GST numbers, and open bank accounts, resulting in large-scale Input Tax Credit (ITC) fraud.

Two arrests have been made, with authorities actively pursuing additional culprits. Investigators have identified 38 fraudulent firms to date. With close cooperation from GST authorities and banks, efforts are underway to clamp down on the broader inter-state evasion scheme.