Rajasthan Man Booked for Rs 55 Crore Fake GST Transactions in UP’s Bhadohi

A Rajasthan-based man has been booked for allegedly obtaining a GST registration using forged documents and operating a fake firm in Uttar Pradesh’s Bhadohi district to generate fictitious business transactions worth crores of rupees, officials said on Wednesday.

The alleged fraud surfaced after Deputy Labour Commissioner (State Tax Service, Mirzapur Division) Kanchan Tiwari conducted a field inspection at M K Enterprises , registered at Azeemullah Chauraha in Bhadohi city. Officials found no office or representative linked to the firm at the address.

Instead, two unrelated businesses Ambe Communications and Maa Shakti Enterprises were found operating there for several years.

According to officials, preliminary investigation revealed that Manish Prajapati , a resident of Ajmer in Rajasthan, allegedly secured the GST number in 2024 using forged documents. Authorities said he showed fake purchase transactions worth Rs 59.25 crore and sales worth Rs 55.71 crore till 2026, while claiming an income of Rs 12.62 crore through the alleged paper transactions.

Tiwari submitted a complaint to the police seeking criminal action. Bhadohi Superintendent of Police Abhinav Tyagi confirmed that an FIR has been registered under relevant sections of the Bharatiya Nyaya Sanhita and further investigation is underway.

Officials say the case highlights India’s growing fake invoice economy , considered one of the country’s biggest underground financial rackets under the GST system. Such networks typically operate by creating shell firms with forged identities and generating bogus invoices without actual movement of goods or services. These fake bills are then used to claim fraudulent input tax credits, inflate turnover, launder money, or evade taxes, causing significant losses to government revenue.