
BENGALURU: A massive fraud, involving senior GST enforcement officials, major transporters and an organised mafia, across the country has come to light, reportedly costing the Union government thousands of crores every month.
According to reports from industry representatives, this nexus is facilitating illegal transportation of high-value goods, including pan masala, areca nut, supari, gutka, sandalwood, iron scrap, coal and other products, without proper invoices. These operations rely on fraudulent GST numbers and forged documents, effectively evading GST compliance and depriving the exchequer of its revenue, pointed out Sunil Atree, president of the All-India Goods Transport Association.
Atree, who is in Bengaluru, said, “The syndicate allegedly operates with the backing of senior officials and mafia. Certain transporters are accused of paying hefty bribes to secure illegal protection and information about GST enforcement activities. They then transport goods with forged documents, ypassing e-way bill requirements.
Invoices are deliberately created for amounts under Rs 50,000 per truckload to escape mandatory documentation and the names of companies involved are changed every six months to avoid detection.’’
He said, “Law-abiding transporters are subjected to harassment and extortion by criminal syndicates. The illegal activities have also led to a significant drop in freight rates, creating undue pressure on legitimate businesses. Several transport companies have been identified as active participants in this fraud. Ten operators totally handle hundreds of trucks each day and the volumes are colossal.”
He provided the names of the ten operators, and said the names of the others can be provided on request. These companies lease vehicles from independent truck owners for illegal operations, paying up to Rs 15–20 lakh per month, he alleged.
Atree, who has written to the GST Intelligence wing, marking copies to Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman, said, “Industry insiders said attempts to report these frauds have been met with intimidation and misuse of political and police connections. The industry has called for urgent intervention to dismantle this syndicate and address the systemic corruption within GST enforcement.’’
A senior officer in the Tax Department said the problem needs to be corrected immediately.