A large-scale fake Input Tax Credit (ITC) fraud has been uncovered in Mathura following a crackdown by the State Intelligence Branch (SIB) of the State Tax Department. The investigation has revealed links to Aligarh and several other districts, with 4 accused arrested for allegedly running bogus firms from rented shops and generating fake invoices to pass fraudulent ITC across multiple states.
The breakthrough came during an SIB probe in Aligarh. After months of surveillance and data analysis, officials traced the network to SG Traders in Mahavan, Mathura, where a rented shop was being used for paper-based trading. During the raid, authorities seized 80 bank passbooks, 68 ATM cards, 49 cheque books, 7 PAN cards, several mobile phones and SIM cards, along with rent agreements and keys to multiple premises. Preliminary scrutiny of bank records showed transactions worth hundreds of crores, indicating large-scale circular trading and ITC fraud.
Investigators said the syndicate operated with clearly defined roles. Members procured PAN, Aadhaar and bank documents, opened GST registrations and bank accounts, created shell firms using forged papers, and identified closed or vacant shops as fake business addresses. Fake purchase and sale invoices were generated without actual movement of goods to pass ITC, causing significant loss to the exchequer. The arrested accused — Nagesh Gautam (Mathura), Karan Pengoria (Agra), Dev Sharma (Agra) and Prashant (Mathura) — allegedly worked under instructions from Delhi-based mastermind Akshat Kumar, who is absconding. They reportedly earned commissions of 30 paise per ₹100 turnover or monthly payments of ₹70,000–₹80,000 and used a Hyundai Verna to transport documents.
Cheque books and documents of firms from Aligarh and other districts were recovered, and authorities are now verifying whether these firms were involved or their credentials were misused. Seized records have been sent to the Aligarh headquarters for forensic and financial analysis. The accused have been handed over to Jamunapar Police in Mathura for legal action under GST laws, and a case has been registered against the absconding kingpin. Officials said the multi-state tax evasion network operated across Uttar Pradesh, Delhi and other states, and further investigation is likely to reveal more firms and financial trails.
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