Punjab Unearths ₹429.30-Cr GST Fraud Network; FIR Registered in Ludhiana: Harpal Cheema

Punjab Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema on Wednesday announced the detection of an alleged multi-state Goods and Services Tax (GST) fraud network involving a suspected tax evasion of ₹429.30 crore, linked to a taxable value of ₹2,410.22 crore.

Cheema said an FIR had been registered in Ludhiana following intelligence gathered by the State Intelligence and Preventive Unit (SIPU). The case, FIR No. 0185 dated October 13, 2026, was registered at Police Station Division No. 4 against Harsh Thapar, proprietor of Shree Balaji Transport Company, along with Sammy Dhiman, Jass and other alleged accomplices.

The accused have been booked under relevant provisions of the Bharatiya Nyaya Sanhita, 2023, and Section 132 of the Central Goods and Services Tax Act, 2017, the minister said.

Explaining how the alleged fraud came to light, Cheema said the investigation began on September 30, 2026, when a State Tax Officer from SIPU, Ludhiana, intercepted a vehicle bearing registration number DL01AR-1775. The vehicle was transporting goods purportedly from Delhi to Punjab.

According to the minister, the accompanying invoices and e-way bills showed supplies intended for three Punjab-based firms. However, when contacted, the firms denied placing the orders or purchasing the goods.

The subsequent investigation allegedly uncovered a network of 62 interconnected firms operating across several states, including 25 firms in Punjab. The department traced the links through data analytics and e-way bill records, Cheema said.

He added that the syndicate was allegedly active primarily during the financial years 2025-26 and 2026-27. The transporter is suspected of facilitating the movement of goods by receiving invoices from other entities and filling Part-B of e-way bills.

Cheema said the matter had been referred to the police for a comprehensive criminal investigation into the alleged network. He also directed the Taxation Department to scrutinise all linked beneficiary dealers, assess potentially wrongful input tax credit claims and initiate recovery of applicable tax, interest and penalties.

“The Punjab Government will not allow the state exchequer to be bled dry. We are increasingly focusing on intelligence-based enforcement to break the backbone of such cartels,” the minister said.

Warning those allegedly involved in tax evasion, Cheema said individuals generating or using fraudulent documents, as well as intermediaries and transporters knowingly facilitating such activities, would be held accountable.

He said the government would protect and facilitate honest taxpayers while taking action against those found deliberately evading taxes.