Bengaluru: ₹410 Crore GST Fraud Busted By Commercial Tax Department, One Arrested

In a major crackdown, the Commercial Tax Department has uncovered a massive ₹410 crore GST fraud network operating in the city and has arrested one person in connection with the case. The action follows a detailed investigation into fraudulent financial activities spanning multiple states, highlighting the scale and organised nature of the racket.

Arrest And Charges

In a press release, the department confirmed the arrest of 42-year-old Mohammed Tauqeer, who was allegedly involved in creating and circulating fake input tax credits. He has been accused of setting up fake companies and running a large-scale operation involving fraudulent transactions. Tauqeer was produced before a special court for economic offences in the city, which remanded him to 14 days of judicial custody.

Fake Bills And ₹410 Crore Fraud

The investigation revealed that Mohammed Tauqeer and his associate, Sheikh Zakir Hussain alias Basha, were the masterminds behind the operation. The duo allegedly set up multiple fake business entities and issued fraudulent tax invoices to firms in Karnataka, Andhra Pradesh and Tamil Nadu without any actual supply of goods. This enabled the generation and distribution of fake input tax credits.

The department stated that the total value of these fraudulent transactions is approximately ₹410 crore, including ₹102.5 crore in fake input tax credits.

Accused On The Run

Both accused are originally from Chittoor district in Andhra Pradesh. While Mohammed Tauqeer was residing in Bengaluru, Sheikh Zakir Hussain was operating from Andhra Pradesh. Officials said that Sheikh Zakir Hussain has fled the country, and legal procedures are underway to trace and arrest him.

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