LUCKNOW The Lucknow Crime Branch busted an organised GST fraud network allegedly involved in creating fake firms, obtaining fraudulent registrations and facilitating tax evasion through bogus input tax credit (ITC) claims. A key accused was arrested on Friday in connection with a case registered by the state tax department, with investigators uncovering suspicious transactions worth nearly ₹2.5 crore and more than 100 linked registrations.
According to officials, the accused would rent shops in the Itaunja area and use those addresses to obtain GST registrations. These firms allegedly existed only on paper and were used to generate fake invoices and fraudulent tax credits.
Additional deputy commissioner of police (crime) Kiran Yadav said the criminal antecedents of the arrested accused are also being verified from other districts, while further legal action in the case is continuing.
The case stems from an FIR registered at Itaunja police station on August 27, 2025, following a complaint by Abhimanyu Pathak, assistant commissioner, state tax, Lucknow. The FIR was lodged under Sections 419, 420, 467, 468 and 471 of the Indian Penal Code after authorities found that a firm had allegedly obtained GST registration using forged rent and lease documents and was claiming inadmissible ITC benefits, resulting in revenue loss to the government.
During the investigation, the name of Buddhi Prakash Awasthi, 35, a resident of Sitapur, who was currently living in Faizullaganj, Lucknow, surfaced. He was arrested on Friday with the assistance of the crime branch’s Cyber Cell, Surveillance Unit, and Itaunja police.
Crime branch officials said the investigation expanded after technical analysis of mobile numbers linked to the suspected GST fraud. Examination of 10 IMEI numbers led investigators to 225 additional mobile numbers. Further scrutiny revealed that 107 of these numbers were connected to registrations of different firms and companies, indicating the existence of a larger organised network operating through multiple identities and entities.
Investigators said the probe also established that ‘Altamas Traders’ (firm) had no real existence despite being registered under GST and conducting substantial financial transactions.
During interrogation, police found that the accused and his associates allegedly operated several shell entities, including Altamas Traders, Kumar Traders, Supreme Enterprises and Buddha Enterprises. Investigators also came across another firm, Sunlight Enterprises, during the course of the probe.
Police said the gang’s modus operandi involved targeting poor and financially vulnerable individuals. The accused and his associates allegedly offered money to obtain Aadhaar cards, PAN cards, bank account details and mobile numbers from such persons.
Using these documents, the gang allegedly prepared forged rent agreements, electricity bills and other supporting records to secure GST registrations. Once registered, fake invoices were generated online to claim fraudulent ITC benefits and evade GST payments.
Officials said similar GST fraud modules had been detected earlier, where unsuspecting people were lured with promises of Mudra loans and their documents were later used to establish fake firms.
Investigators found that a bank account operated in the name of Altamas Traders recorded transactions worth approximately ₹2.25 crore. The money was allegedly routed through several bank accounts as part of the network’s operations.
Crime Branch officials said the overall financial trail linked to the fake firms and associated accounts has crossed ₹2.5 crore. Efforts are underway to freeze the bank accounts involved while investigators continue to trace additional beneficiaries and transactions.
During the arrest, police recovered several banking and digital documents allegedly used in the fraud. The seizure included debit cards, mobile phones, a cheque book, a SIM card and other records linked to the operation.
Officials said further investigation is underway to identify other members of the network, verify additional firms and examine the complete extent of the GST evasion racket.
