Bareilly: Accused in ₹1.25 Crore GST Fraud Via Fictitious Firm Arrested
A man has been arrested in Bareilly for defrauding the government of ₹1.25 crore through a fake firm, facilitated by input tax credit manipulation.
बरेली उत्तर प्रदेश | इज़हार आलम
Joint Operation Leads to Arrest
A collaborative effort between the Special Investigation Team (SIT)-GST of Bareilly and the Shahi police station has resulted in the apprehension of a wanted accused involved in defrauding government revenue and illegally claiming input tax credit (ITC) benefits. The arrested individual has been identified as 40-year-old Laxminarayan, a resident of Dinuk village.
The arrest took place on the evening of September 25, 2026, around 4:30 PM, within the jurisdiction of the Cantt police station. Investigations have uncovered revenue evasion amounting to ₹67.44 lakh in the financial year 2024-25 and ₹57.92 lakh in 2025-26, totaling approximately ₹1.25 crore. This scheme appears to be a well-orchestrated attempt to siphon funds from the government treasury through fictitious firms.
Accused Admits Role in Fake Firm Registration
During interrogation, the accused, Laxminarayan, confessed to registering a fictitious firm named 'ABR Traders' on his sawmill land in collusion with Ashad Mian. In return for this facilitation, he received ₹70,000 in cash and an additional amount via UPI. He admitted to allowing the use of his shop's address and electricity bill for the firm's registration.
The firm was registered after erecting a signboard, and subsequently, ITC was claimed based on fabricated invoices, causing significant losses to government revenue. The operation appears to have been managed remotely via computers from Rampur, indicating a sophisticated organized gang exploiting loopholes in the tax system.
Legal Action and Ongoing Investigation
This significant operation, conducted under the guidance of the Senior Superintendent of Police, saw active participation from Cantt Police Station Inspector Sanjay Kumar Dhir and his team. A case has been registered against the arrested Laxminarayan under various sections of the Indian Penal Code (BNS), including 318(4), 338, 336(3), 340(2), 316(5), and 61(2). Following his arrest, Laxminarayan is being presented before the court for further legal proceedings.
The police are actively pursuing leads to identify and apprehend other individuals involved in this racket, aiming to dismantle the entire network and bring all responsible parties to justice.