Lawyer among 2 arrested for running fake GST firm racket

In a major crackdown on tax fraud, the Delhi Police have arrested two men, including a practising lawyer, for allegedly operating a network of fake GST firms used to issue bogus invoices and facilitate fraudulent tax settlements in South-West Delhi.

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The accused have been identified as Sandeep (27), a resident of Panipat in Haryana, and Inderpal (45), a lawyer from Burari, Delhi.

According to Deputy Commissioner of Police (Southwest) Amit Goel, the duo exploited genuine identification documents such as PAN cards, Aadhaar cards, SIM cards, rent agreements and email IDs to create multiple fake GST firms that were later used to generate counterfeit bills via accounting software.

The fraud came to light after a complainant, Sumit, reported that while applying for his own GST registration, he discovered two firms already registered under his PAN without his knowledge. Further inquiry revealed that these firms had generated crores in fake turnover, severely affecting Sumit’s financial and professional credibility.

A case was promptly registered. Investigation and GST Department records confirmed that the firms linked to Sumit’s PAN were operating from fictitious addresses. The police arrested Sandeep from Panipat, who revealed his seven-year collaboration with Inderpal. Using login credentials purchased for Rs 25,000-Rs 30,000 per firm, the duo would manipulate GST portals and generate bogus bills for clients seeking tax benefits.

Inderpal, who had gone into hiding in Kairana, Uttar Pradesh, was later tracked and arrested. The police are now investigating the extent of the racket and identifying other possible collaborators.