The Cyber Cell and Surveillance Team of the Lucknow Police Commissionerate, in a joint operation with Mahanagar police, busted an organised GST tax evasion racket involving fake firms, forged documents and bogus Input Tax Credit (ITC) transactions worth over ₹4.70 crore. Police arrested three accused for causing a revenue loss of nearly ₹37 lakh to the state and Central governments, a police department release read on Friday.
Kamlesh Dixit, deputy commissioner of police (DCP), crime, revealed that the action followed an FIR filed on November 3, 2025, by Ashok Kumar Tripathi, deputy commissioner, State Tax Division-19, Lucknow. The firm dealt on paper in ferrous waste and scrap but systematically availed undue ITC using fake electricity bills and documents.
Dixit said police arrested three individuals: Deepak Kumar, 25, Prashant Tiwari, 25, and Kailash Maurya, 32.
During the investigation, police found that the accused created fake GST firms by preparing forged electricity bills, lease deeds and e-way bills. They lured poor and needy people with ₹10,000–15,000 to obtain Aadhaar cards, PAN cards, bank accounts and mobile numbers, which they used to register bogus firms.
The gang generated fake invoices and showed transactions as genuine by creating fraudulent e-way bills, enabling illegal ITC claims on commission.
Police said the landlord at the listed address confirmed that no such office or GST firm ever operated from the premises.
{{/usCountry}}Police said the landlord at the listed address confirmed that no such office or GST firm ever operated from the premises.
{{/usCountry}}Investigators said Deepak used bank accounts in his name to route transactions worth crores through the fake firm, causing major revenue loss. He allegedly transferred about ₹15 lakh to Prashant Tiwari through four cheques. Kailash Maurya allegedly facilitated the fraud by getting the firm’s seal prepared and helping operate bank accounts.
Investigators found that fake invoice transactions worth about ₹4.70 crore were routed through the firm’s accounts, resulting in GST evasion of approximately ₹37.52 lakh, including a loss of about ₹18.76 lakh to Uttar Pradesh alone.
Police seized four mobile phones, multiple cheque books and passbooks from five different banks, a withdrawal form and a passport. Police have launched a manhunt for other absconding accused involved.