In a significant crackdown on financial crime, the Noida police have invoked the stringent Uttar Pradesh Gangsters and Anti-Social Activities (Prevention) Act against 33 individuals linked to a massive GST scam. This decisive action follows the arrest of 45 suspects involved in this elaborate scheme.
The GST scam, which surfaced in June 2023, involves a substantial revenue loss to the government. Authorities uncovered that fraudulent input tax credits were claimed by numerous fake companies, which were created using forged documents. According to Deputy Commissioner of Police (Crime) Shakti Mohan Avasthy, the Gangsters Act has been applied to the GST fraud case registered at Sector 20 police station. This measure targets 33 individuals who have been formally charged under sections 2/3 of the Act.
Further steps will include the attachment of properties belonging to the accused, as part of the ongoing investigation led by Avasthy. The probe has revealed the involvement of hundreds of fictitious firms, responsible for transactions amounting to approximately Rs 10,000 crore. Over two dozen arrests have been made to date, as per the officials spearheading the investigation.
The police initially filed an FIR at the Sector 20 police station under several sections of the Indian Penal Code, including 420 (cheating), 467, 468, 471 (all related to forgery), and 120B (criminal conspiracy). The case first drew attention when fraudsters used the PAN details of a journalist to register fake companies in Punjab and Maharashtra, with an attempt to establish a third in Delhi being thwarted by GST authorities.
This firm action by the Noida police demonstrates their commitment to tackling large-scale financial fraud and safeguarding the integrity of the tax system.