Lucknow: The Lucknow police commissionerate on Friday busted a GST fraud racket, exposing tax evasion of nearly Rs 37 lakh and suspicious transactions exceeding Rs 4.7 crore.Three accused were arrested in a joint operation by the Mahanagar police station, cyber cell and surveillance team. Police said the racket operated by luring economically weaker individuals with Rs10,000-15,000 in exchange for their Aadhaar cards, PAN details, bank accounts and mobile numbers. These documents were then used to create fake GST firms using forged rent agreements and electricity bills.The case originated from a complaint filed on Nov 3, 2025, by Ashok Kumar Tripathi, deputy commissioner, state tax, Lucknow. Tripathi alleged that a firm named K S Enterprises, registered at a bogus address on Bhagwati Charan Verma Marg, was fraudulently created to carry out fake transactions in scrap trading.Police said the accused generated fake invoices and e-way bills to show bogus transactions as legitimate, enabling the illegal sale of input tax credit (ITC) on commission. Through these means, transactions worth Rs4.7 crore were routed via multiple bank accounts, causing significant losses to govt revenue.“Those arrested were Deepak Kumar (25), Prashant Tiwari (25) and Kailash Maurya (32). Deepak allegedly used his bank account to facilitate fraudulent transactions, while Prashant handled fund transfers, including receiving around Rs15 lakh through cheques. Kailash is accused of preparing fake firm seals and assisting in account operations,” said DCP crime, Kamlesh Dixit.
