100 Crore GST Fraud Case in Bareilly: Farzan Hashmi Arrested, Nepal Link Investigated

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Bareilly: Authorities have detained Farzan Hashmi in connection with a suspected ₹100 crore Goods and Services Tax (GST) fraud scheme, with investigators probing a network of fictitious enterprises and potential ties to Nepal.

Overview of the Case

The Special Investigation Team (SIT) is examining allegations of fabricated business entities, counterfeit documentation, and financial transactions designed to exploit tax credit mechanisms. The SIT’s probe has revealed that Hashmi, a resident of Karadih Bazar, allegedly managed a system of shell companies from Nepal under the alias “Sandeep.”

Key Entities Under Scrutiny

Seven enterprises are currently under scrutiny as part of the investigation: Syndicate FS Traders, Siddhi Vinayak Enterprises, Maa Enterprises, Night Star, Art Life Huda, Art Life Associate, and Arham Agro Foods. These firms are suspected of being used to generate false transaction records, enabling the submission of fictitious invoices to claim input tax credits (ITC).

Investigation Details

The SIT is analyzing bank statements, GST filings, and digital communications to trace the movement of funds and identify entities that may have benefited from the scheme. In addition to these firms, Sobti Infra and Sobti Infratech have been flagged for further examination.

While the mere inclusion of a company in an investigation does not imply guilt, officials are investigating potential financial or operational links between these entities and the suspected fraud network. Ownership records, transaction histories, and digital correspondence are being reviewed to determine the roles of individuals associated with the businesses.

Progress and Next Steps

Two suspects have already been apprehended as part of the case. The SIT is now mapping connections between the arrested individuals, the shell companies, and other businesses implicated in the scheme. Investigators are focusing on identifying the ultimate beneficiaries of the alleged tax evasion, including entities that may have received illicit ITC claims.

The probe also involves tracing communication channels between individuals in Nepal and India, as well as verifying the authenticity of business activities conducted by the implicated firms. Authorities are examining whether transactions were conducted without genuine commercial activity, which could have resulted in significant revenue loss for the government.

The investigation remains ongoing, with the SIT expected to expand its scope if additional entities or individuals are found to be involved. Current efforts prioritize verifying the legitimacy of financial records, establishing the extent of the network’s operations, and determining the legal liability of those implicated.