The Central Noida Police on Monday arrested two men allegedly involved in a large-scale GST refund scam that defrauded the government of crores through fictitious firms registered across western Uttar Pradesh.
The accused — Praveen Kumar (38) from Saloni village in Hapur district and Satendra Singh (37) from Bighrahu village in Bulandshahr — were apprehended from Patwari area of Greater Noida. According to investigators, the duo was part of a sophisticated syndicate that orchestrated the creation of dozens of bogus firms using forged identification and business documents.
Modus Operandi: Fake Firms, Forged IDs, and Fraudulent Refunds
Police revealed that the network operated by fabricating Aadhaar cards, PAN cards, rent agreements, and other credentials to register fake business entities on UDYAM and GST portals. Using these forged records, the accused opened multiple current accounts in several branches of the Bank of India located in Ghaziabad and Gautam Buddh Nagar districts.
“They submitted fake KYC papers with their own photographs to open accounts and run operations under fictitious firm names. The accounts were later used to claim and receive fraudulent GST refunds, which were swiftly diverted to other linked accounts to obscure the trail,” said DCP (Central Noida) Shakti Mohan Avasthy.
Fake Firms and Massive Transactions
During the probe, investigators identified at least six bogus companies directly linked to the arrested duo — M/s Ridhi Sidhi Enterprises, M/s Bhawani Impex, M/s Jhalak Enterprises, M/s Gaurav Enterprises, M/s Damini India International,and M/s Radhika Enterprises.
These entities collectively recorded suspicious financial transactions worth ₹3.4 crore between June and November 2025. However, officials believe these firms are just a fraction of the larger operation.
The Wider Network: 85 Bogus Firms, ₹51 Crore in Fake Refunds
Preliminary findings suggest the syndicate facilitated the registration of nearly 85 shell firms, all created using fabricated identity proofs and addresses. Through these, they allegedly claimed fraudulent input tax credit (ITC) refunds amounting to ₹51 crore, while generating fake invoices worth an estimated ₹350 crore to justify the claims.
Digital Trail and Recovery
In a bid to conceal their tracks, the accused used nine primary mobile numbers linked to 18 IMEI numbers, from which they managed 87 additional mobile connections used for one-time passwords and account verifications.
Police seized a range of incriminating materials from their possession, including Counterfeit Aadhaar and PAN cards, Forged rent agreements, 10 company seals and stamps, Cheque books and account opening forms, and multiple SIM cards and mobile devices used in the fraud
Legal Action and Ongoing Investigation
An FIR has been registered under various sections of the Bharatiya Nyaya Sanhita (BNS) and other relevant laws concerning forgery, fraud, and criminal conspiracy.
Authorities are now tracing the financial trail and identifying other individuals and bank officials who may have colluded with the gang. The GST Department and cyber forensic teams have also joined the investigation to examine the digital evidence and transaction logs.
Officials believe this syndicate may be part of a wider interstate racket operating from Delhi-NCR to western UP, exploiting loopholes in the GST registration and refund system.