Probe in Chittoor Busts ID-Theft Network Claiming Crores of Input Tax
The first complainant in this regard turned out to be a daily-wage labourer, who approached the tax office with a notice demanding ₹12.17 crore.
Update: 2025-12-03 16:20 GMT
TIRUPATI: Officials of the GST in Chittoor district have exposed an identity-theft network that created fake companies and falsely claimed GST input tax credit (ITC) running into hundreds of crores. The scamming had escaped scrutiny for years. It surfaced after GST officials sent ITD notices to claimants who turned out to be daily-wage earners and small traders.
The first complainant in this regard turned out to be a daily-wage labourer, who approached the tax office with a notice demanding ₹12.17 crore. His Aadhaar card and PAN details had been used to open firms and generate invoices without his knowledge. Sources say similar notices had reached several small traders and other labourers whose personal documents had been taken by middlemen on various pretexts.
Sources familiar with the investigation revealed that the gang collected Aadhaar numbers, PAN cards and photographs from poor individuals by offering small payments. Gang members then used these details to access DigiLocker by linking the victims’ Aadhaar numbers to mobile phones controlled by their network.
The gang then created new email IDs and mobile numbers and opened bank accounts in the name of various firms the gang members registered in the victims’ names.
Preliminary records indicate that shell companies had been created across Andhra Pradesh, Telangana and Karnataka. Many of the registrations originated from Chittoor. They issued bogus invoices from Hyderabad, routing financial activity through Bengaluru. Several such firms are now under scrutiny for repeatedly claiming ITC through the same pattern of documentation and billing.
The case took a new turn when a writ petition had been filed in the High Court in the name of a man who had no idea about the petition. This discovery led to further scrutiny of forged signatures and fabricated paperwork.
On November 20, officials issued around 450 show-cause notices across Chittoor district. Several people who acted as intermediaries or facilitators have since gone missing.
Four teams are now examining bank statements, call data, IP logs and DigiLocker access trails in an effort to trace those behind the operation.
It is estimated that more than 50 individuals, including registration brokers, digital service centre workers, intermediaries and handlers of shell companies, are linked to the network.