Bengaluru Authorities Uncover ₹410 Crore Fake Invoice Scam Involving Multiple States
₹410 Crore Fake Billing Racket Busted In Bengaluru; Interstate GST Network Under Probe
News 18
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The Commercial Taxes Department in Bengaluru has dismantled a fake invoice racket causing ₹410 crore in tax evasion. The operation involved shell companies across Karnataka, Andhra Pradesh, and Tamil Nadu, issuing fraudulent tax invoices without actual goods movement. One key suspect has been arrested, with further investigations ongoing.
- 01A fake invoice racket involving ₹410 crore in tax evasion was uncovered in Bengaluru.
- 02The accused, Tauqeer alias Mohammed, allegedly operated shell companies in Karnataka, Andhra Pradesh, and Tamil Nadu.
- 03Fraudulent input tax credit claims under the Goods and Services Tax (GST) regime totaled ₹102.5 crore.
- 04The investigation revealed fabricated documents used to register fake firms for issuing invoices.
- 05Authorities expect more arrests as the investigation into the scam continues.
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The Commercial Taxes Department in Bengaluru has revealed a significant fake invoice racket that resulted in an estimated ₹410 crore in tax evasion. The main accused, Tauqeer alias Mohammed, aged 42, is alleged to have established a network of shell companies across Karnataka, Andhra Pradesh, and Tamil Nadu to generate fake tax invoices without the actual movement of goods. The scam reportedly involved fraudulent claims for input tax credits under the Goods and Services Tax (GST), amounting to ₹102.5 crore. Investigators found that the accused created multiple fake firms using forged documents and bogus addresses, which allowed them to obtain GST registrations. These entities issued invoices for non-existent transactions, primarily involving construction materials like cement and steel rods. The investigation also uncovered that several bank accounts were opened under different names to facilitate the routing of fraudulent proceeds. Authorities noted a pattern where companies were quickly shut down following tax notices, indicating a deliberate attempt to evade taxes. The enforcement wing is actively pursuing further leads, and additional arrests are anticipated as the investigation unfolds.
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The bust of this fake invoice racket could lead to increased scrutiny of GST registrations and tax compliance among businesses in the region, potentially affecting contractors and traders.
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