In a major GST fraud case, the Directorate General of GST Intelligence (DGGI), Lucknow Zone headed by PADG Mr. Arun Kumar, has unearthed a scam involving 20 fake firms that fraudulently claimed Input Tax Credit (ITC) amounting to over Rs. 60 crore.
Two individuals, including a tax advocate and a former political candidate, have been arrested in connection with the scam.
The arrested accused have been identified as Advocate Sandeep Kumar Srivastava, a resident of Azad Nagar in Hathras, and Nitin Dwivedi, a resident of Cinema Chauraha. Dwivedi is believed to be the mastermind behind the operation, instructing the creation of the bogus firms and generating fake invoices worth ₹254 crore to claim fraudulent ITC.
According to officials, the scam involved issuing fake GST invoices through 20 shell companies without the actual movement of goods or services. The bogus transactions were used to avail ITC and defraud the government of taxes.
Based on intelligence inputs, DGGI teams raided 21 locations across Hathras, Barabanki, Lucknow, and Rae Bareli. The searches resulted in the arrests of both accused, who were produced before a magistrate and remanded to 14 days of judicial custody.
Notably, Nitin Dwivedi had previously contested elections for the state legislative assembly, while Sandeep Srivastava is a practicing tax advocate. The case underscores the continued crackdown by GST intelligence units against fraudulent ITC claims and tax evasion across Uttar Pradesh.
The investigation is ongoing and further arrests are expected as more shell entities and individuals involved in the fake invoice racket are identified.
