The State Goods and Services Tax (GST) Department in Aligarh has issued official notices to 11 companies suspected of tax evasion through fake business addresses. The action comes as part of a broader investigation launched on the orders of the GST headquarters in Lucknow.
Authorities have already uncovered two fake firms involved in evading over ₹50 crore in taxes using forged credentials. The probe further revealed that a gang had previously operated several fake firms, conducting transactions worth more than ₹1 crore. These shell companies were reportedly registered using PAN and Aadhaar details of people from economically weaker backgrounds.
The GST Department’s findings also prompted the Income Tax Department to begin issuing notices, signalling the seriousness of the financial irregularities.
Rashmi Singh, Joint Commissioner of the GST Special Investigation Branch, confirmed that notices have been served to all 11 firms identified so far. She said, “A detailed investigation is in progress and more such entities may be unearthed.”
This crackdown in Aligarh highlights a larger national trend where white-collar criminals are increasingly relying on fake firms, identity theft, and manipulated invoices to dodge taxes. Experts believe that unless real-time verification systems and stronger compliance measures are put in place, such fraudulent networks will continue to grow undetected.
One of the more worrying aspects of the case is the misuse of documents belonging to poor and marginalised individuals. These people are often unaware that their PAN and Aadhaar cards are being used to set up fake businesses, putting them at risk of legal and financial consequences. The situation raises broader concerns about data security, consent, and the ethical responsibilities of fintech platforms in India’s fast-growing digital economy.
As the investigation deepens, authorities urge stronger vigilance and reforms to prevent further exploitation through such deceptive practices.
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