Arunachal: Two arrested in Rs 1.09 crore GST fraud using fake firms and identity theft

Police in Arunachal's Naharlagun arrested two individuals for their alleged involvement in a massive Goods and Services Tax (GST) fraud worth Rs 1.09 crore, carried out through the creation of fictitious firms and misuse of digital identities.

The arrests came after a written complaint was filed by Tajo Parang, proprietor of M/s JZ Enterprise, Polo Colony, who reported that his GST user ID and password were fraudulently accessed without consent. The accused, identified as Ravi Rai (34) and Harka Bahadur alias Sumit Sonar (37), allegedly used the stolen credentials to set up fake firms, including M/s SK Enterprise and M/s Nagar Traders.

Investigations revealed that the duo generated bogus invoices and manipulated Input Tax Credit (ITC) transactions, routing funds worth approximately Rs 1.09 crore to M/s Ananth Enterprises and M/s Jerang Enterprises. This fraudulent activity resulted in a major financial loss and GST blockage in the complainant’s account.

Police registered the case under NLG/PS/Case No. 83/25 U/S 316(4)/3(5) BNS and launched a manhunt for the culprits. Following days of surveillance and intelligence gathering, a team led by Inspector Krishnendu Dev (OC, PS NLG), with support from SI B.P. Singh, ASI Iter Ngomdir, H/Ct. Nabam Talo, L/Ct. R. Damyor, and Ct. H. Tamin, successfully tracked and apprehended the duo from Harmutti, North Lakhimpur.

Superintendent of Police, Dr. Nyelam Nega (ICR, Naharlagun), has urged business owners, traders, and citizens to remain vigilant against online financial fraud and identity theft. He emphasized the importance of safeguarding GST credentials, bank details, and digital identities, and called on people to report any suspicious activity immediately.

Police have assured that further investigation is underway to determine if the accused had links to a larger financial fraud network.