Jodhpur Gang Exposed in ₹524 Crore GST Scam: 240 Fake Firms Created with Forged Aadhaar & PAN Cards

A large-scale Goods and Services Tax (GST) scam amounting to ₹524 crore has been uncovered by police in Jodhpur. 

Unmasking the ₹524 Crore GST Fraud: 240 Fake Companies 

The Jodhpur-gang involved fraudulently registered 240 fake companies across 22 Indian states using forged identity documents and manipulated input tax credit (ITC) systems, leading to the arrest of 7 individuals, including an e-Mitra operator.

The operation began when police in Jodhpur's Devnagar area arrested key gang members found to be creating dummy firms using fake Aadhaar and PAN cards. These companies were then used to file GST claims with fabricated invoices and e-way bills. A total of ₹278 crore in fake bills was used to falsely claim ₹246 crore in ITC benefits, seriously affecting government revenue.

How the Fake Firms Were Created

Praveen Panwar, an e-Mitra operator, along with Saddam Hussain, played central roles in fabricating false identities. They charged ₹20,000 to ₹30,000 per set of fake documentation, using forged seals and signatures to manipulate address changes in Aadhaar cards. Once updated, accomplices would assist in acquiring SIM cards and bank accounts in those names, followed by fake firm registrations on the Udyam portal.

Extent of Operations Across India

The gang didn’t limit themselves to Rajasthan. Fake entities were found registered in 22 states including Gujarat, Maharashtra, Uttar Pradesh, Delhi, and Tamil Nadu among others. Police traced 44 firms directly via PAN cards, email IDs, and mobile numbers, while 196 others were pinned down through digital trails and document verifications. More than 152 GST registrations have already been cancelled by authorities.

Read More: Bank Frauds in India Triple to ₹36,000 Crore: How Steps Are Being Taken to Tackle the Surge!

Arrested and Further Investigations Ongoing

7 individuals have been arrested so far: Praveen Panwar, Saddam Hussain, Kishan Singh, Ranveer Singh, Gajendra Singh, Chelaram, and Amit Bhati. 

Their interrogation revealed a systematic modus operandi including the use of non-existent business premises, forged rent agreements, and laundering of unaccounted funds via dummy current accounts. The police also recovered digital evidence like forged ID databases and fake seals.

Potential for Wider Financial Loss

With over 100 firms still under investigation, the financial impact could rise significantly. Authorities are collaborating with tax agencies to determine the full extent of the scam and plug vulnerabilities in GST registration and verification systems. This incident has raised awareness of the misuse possibilities via decentralised service platforms like e-Mitra.

Conclusion

The ₹524 crore GST fraud uncovered in Jodhpur showcases a highly coordinated large-scale scam extending across multiple states. With forged identity documents, over 240 fake companies were floated to exploit the ITC system. Arrests of key individuals and ongoing investigations may lead to stricter regulatory reforms in GST and e-governance platforms.

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