Punjab Unearths ₹1,549 Crore Bogus Billing Scam; ₹108.79 Crore Fraudulent ITC Blocked: FM Harpal Singh Cheema

In a sweeping enforcement drive that signals a hard-hitting stand against tax evasion, Punjab’s Finance, Planning, Excise, and Taxation Minister Harpal Singh Cheema revealed that the state has unearthed fraudulent transactions worth a staggering Rs 1,549 crore and blocked fake Input Tax Credit (ITC) claims to the tune of Rs 108.79 crore in the current fiscal year.

At a high-profile press conference held at Punjab Bhawan on Monday, Cheema detailed a series of high-impact actions taken by the state’s Taxation Department. “We have busted multiple fake billing rackets across the state. For example, Rs 21 crore in ITC was blocked after exposing fake invoices amounting to Rs 900 crore in gold transactions in Ludhiana alone,” said Cheema.

Other major operations included:

• Rs 12 crore in fraudulent ITC blocked through fake coal transactions worth Rs 226 crore across Mohali, Kharar, and Kotkapura.
• A massive Rs 75.79 crore in ITC blocked through bogus transactions totaling Rs 423 crore in Ludhiana and Mandi Gobindgarh.
• A gold smuggling attempt intercepted near Ludhiana, where authorities seized 2 kg of gold being transported without valid documentation. The case is under investigation.

Statewide Operation Exposes Network of Fraudulent Firms

Cheema highlighted a landmark enforcement operation conducted on May 19, during which 195 GST-registered firmswere physically verified. The results were shocking: Rs 423 crore in fake transactions uncovered and Rs 75.79 crore in ITC blocked. A large portion of these firms were clustered in Ludhiana (100 firms) and Mandi Gobindgarh (72 firms).

“This was one of the most impactful anti-evasion drives in Punjab’s history,” said Cheema. He also revealed that a key player behind a Rs 29.50 crore fake invoice racket had been arrested. The accused firm reportedly made inward supplies worth Rs 163 crore in just two years, sourced from over 60 bogus or cancelled entities.

Tech-Driven Tax Intelligence Yields Results

The success of these crackdowns is being attributed to an advanced digital tracking system developed under a partnership with IIT Hyderabad. The Taxation Department has already launched 15 intelligent modules for real-time fraud detection, with 7 more in the pipeline.

Incentivising consumer participation has also played a role. Under the ‘Bill Liyao Inaam Pao’ scheme, 4,880 citizenswon prizes totaling Rs 2.89 crore by uploading valid purchase invoices on the ‘Mera Bill’ app. Additionally, discrepancies in submitted bills led to penalties amounting to Rs 9.07 crore, with Rs 7.20 crore successfully recovered.

AAP vs Opposition: War of Words

The minister didn’t hold back in slamming opposition parties, accusing the Congress, BJP, and Akali Dal of historically colluding with tax evaders. “These parties are now trying to shield their allies because the heat is on. But our government will not back down,” he said.

Cheema compared the GST collection figures to highlight the difference in governance. “The AAP government collected Rs 62,733 crore in three years — nearly matching the Rs 63,042 crore collected by the previous Congress government in five years.”

“This shows what happens when a government prioritises transparency and accountability over personal enrichment,” Cheema added.

Read More: Rs. 75 Crore Fake GST ITC Fraud: Patiala House Court Grants Bail To Accused