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UP: Three arrested for ₹37 lakh GST fraud by setting up fake firm in lucknow
UP: Three arrested for ₹37 lakh GST fraud by setting up fake firm in lucknow
Lucknow, The Uttar Pradesh Police has arrested three persons for allegedly causing a loss of around ₹37 lakh to the government by evading GST, officials said on Friday.
The accused set up a fake firm by using forged documents, including a fabricated electricity bill, they said.
After a complaint was filed by Ashok Kumar Tripathi, Deputy Commissioner, State Tax, Lucknow , on November 3, last year, police registered the case at the Mahanagar police station here.
According to the police, the accused created a fictitious firm, K S Enterprises, purportedly operating from a house in the Mahanagar area, and obtained the Goods and Services Tax registration for trading in ferrous waste and scrap.
During the investigation, police found the firm was registered using a forged electricity bill and a bogus address.
The landlord at the given address informed the police that no such office or GST firm was operating from his premises.
According to the police, the accused allegedly availed wrongful input tax credit and carried out transactions worth about ₹4.70 crore through various bank accounts, resulting in a GST revenue loss of ₹37,52,545.32, including ₹18,76,272.50 to the Uttar Pradesh exchequer.
The police arrested Deepak Kumar, 25, Prashant Tiwari, 25, both residents of Lucknow, and Kailash Maurya, 32, a resident of Sandila in Hardoi district.
According to the police, Deepak allegedly operated bank accounts in his name and carried out transactions with various companies.
Around ₹15 lakh was transferred through four cheques to Prashant Tiwari, who allegedly used the money for personal expenses.
Kailash Maurya is accused of getting a fake seal of the firm prepared and assisting in opening bank accounts to facilitate the fraud.
Police said Deepak has a criminal history, including a 2019 murder case and a case under the Uttar Pradesh Gangsters Act.
The criminal antecedents of the other accused are being verified.
Other absconding accused include the person in whose name they obtained the GST registration, police said, adding that efforts are on to trace them. Further investigation is underway.
This article was generated from an automated news agency feed without modifications to text.
