Meerut/Bahraich (UP), April 6 – Three individuals have been arrested in Meerut and Bahraich districts, uncovering two separate multi-crore GST fraud rackets worth over Rs 27 crore, officials said on Monday.
The accused in Meerut, identified as Wasim Akram alias Monu (38), had amassed input tax credit (ITC) by generating fake invoices through fictitious firms, causing a revenue loss of about Rs 17 crore to the government, police said.
Investigation revealed that Monu, a resident of Ghaziabad, was part of a gang using fake Aadhaar and PAN cards to set up companies and evade taxes by filing fraudulent GST returns.
Furthermore, they resorted to tax evasion through the manipulation of e-way bills.
During interrogation, Monu confessed to having committed fraud through fake firms in collusion with his accomplices, police said.
In Bahraich, police arrested Shubham Gupta and Nek Alam on Sunday for running a similar racket, causing a revenue loss of about Rs 10.23 crore to the government, according to an official statement.
The investigation into a case registered by the GST Department’s SIT in August 2025 revealed that the two lured unsuspecting people with promises of arranging loans and collected their Aadhaar cards, PAN cards and other documents.
Using these documents, the accused allegedly registered fake companies and generated bogus invoices by showing fictitious transactions without any actual business activity.
Police officials said that through this modus operandi, the duo fraudulently availed ITC and created paper transactions among multiple firms, causing significant loss to government revenue.
Police said that efforts are on to nab the other accused involved in this case.