₹410 Crore GST Fraud Uncovered: Key Accused Arrested in Bengaluru

The Commercial Taxes Department has uncovered a major fake invoice racket involving alleged tax evasion of ₹410 crore, with the arrest of a key accused in Bengaluru as part of an ongoing investigation.

Officials identified the accused as Tauqeer alias Mohammed (42), who is suspected of operating a network of shell companies across Karnataka, Andhra Pradesh and Tamil Nadu. The network allegedly generated fraudulent tax invoices without any actual movement of goods, facilitating large-scale tax evasion while defrauding contractors and traders.

According to investigators, the racket involved evasion amounting to ₹410 crore, including ₹102.5 crore claimed as fraudulent input tax credit under the Goods and Services Tax (GST) framework.

Authorities stated that the accused created multiple fictitious firms using forged documents and fake addresses. Fabricated rental and lease agreements were reportedly submitted to register these entities as sole proprietorships and limited liability partnerships, enabling them to obtain GST registrations.

These shell entities were then used to issue invoices for non-existent transactions. The investigation further revealed that numerous bank accounts were opened under different identities, often using mobile numbers and Aadhaar details belonging to unsuspecting individuals, to channel the proceeds of the fraud.

The fake invoices typically listed construction-related materials such as cement, steel rods, zinc sheets and pipes—items commonly used in infrastructure and contracting work—to lend credibility to the transactions.

Officials also observed a recurring pattern in which companies were abruptly shut down soon after receiving tax notices, indicating a deliberate attempt to evade detection and enforcement.

The enforcement wing of the Commercial Taxes Department continues to probe the मामले, focusing on identifying other individuals linked to the network and assessing the full extent of the fraud. Authorities have indicated that further arrests are likely as the investigation progresses.