Massive Rs 11.79 Crore GST Fraud Ring Busted: How Cyberabad Police Uncovered Fake Firms Across Eight States

The Cyberabad Police has successfully dismantled an elaborate inter-state GST fraud operation that fraudulently claimed input tax credit worth Rs 11.79 crore through a complex network of non-existent companies across eight Indian states.

This sophisticated operation employed falsified identities and manipulated government systems, resulting in significant financial losses to the national treasury.

On September 3, the Economic Offences Wing of Cyberabad Police filed charges after discovering a carefully orchestrated scheme. The perpetrators had established ten fictional GST-registered businesses that existed solely on documentation, never conducting legitimate operations or physically moving any merchandise.

According to police reports, the suspects utilized these shell entities to produce counterfeit invoices and create fictitious business transactions totaling approximately Rs 53.73 crore. These fraudulent activities enabled them to unlawfully claim and transfer input tax credits amounting to Rs 11,79,76,284.

The operation was spearheaded by Abdullah, who coordinated the extensive network spanning Telangana, Maharashtra, Tamil Nadu, Haryana, Odisha, Chhattisgarh, Karnataka, and Gujarat.

Their methodology primarily involved creating counterfeit documentation, including modified Aadhaar cards, PAN cards, electricity bills, and rental agreements.

These falsified documents were then used to acquire SIM cards and complete OTP verifications on the GST portal to register GST numbers for these non-existent businesses.

The group fabricated transactions, generating false purchase and sales invoices to demonstrate artificial turnover and claim tax credits despite no actual movement of goods.

Their operations included e-waybill manipulation, with the network generating 405 fraudulent e-waybills to support their deception, often utilizing legitimate vehicle registration numbers while altering chassis details.

The comprehensive scheme involved 52 businesses, indicating the substantial scale of this financial fraud operation.

On November 12, Cyberabad Police successfully apprehended two key members of the fraud network, including Sohil Muradali Lakhani, identified as the organizer and financial handler from Gujarat who was residing in Hyderabad.

Mohd Akram Hasnuddin, a middleman responsible for document courier services, along with two technical specialists - Syed Mujtaba Hussaini and Ayiti Raja Shekar - remain at large.