7 BOOKED FOR RS 69.57 CR TAX FRAUD
TWO OTHERS BOOKED FOR PASSING OF UNACCOUNTED GOODS WITHOUT PROPER BILLING
Chandigarh, September 15
In a major escalation of its fight against tax evasion, Punjab Finance, Planning, Excise and Taxation Minister Advocate Harpal Singh Cheema on Monday announced that the state Taxation Department has registered two FIRs against seven individuals for their involvement in a massive bogus billing scam including the fraudulent transactions of Rs 385 crore, leading to a tax evasion of Rs 69.57 crore.
Revealing the details, the Finance Minister Harpal Singh Cheema said that the the first FIR, filed on September 12, 2025, targets M/s Rajdhani Iron Products Pvt. Ltd. and its directors, Manish Garg and Rythem Garg. He said that the investigation uncovered a complex network of linked bogus firms, including M/s Mahalakshmi Traders and M/s Shiv Shakti Enterprises, which were all engaged in large-scale fraudulent activities and the wrongful availment of Input Tax Credit (ITC). “A physical verification of the declared business locations revealed that they were either closed or nonexistent, confirming the fraudulent nature of their operations. The firm is accused of fraudulent transactions amounting to Rs 310 crore, resulting in a tax evasion of Rs 55.93 crore”, said Cheema while adding that the FIR in this case was lodged with the Senior Superintendent of Police, Fatehgarh Sahib.
Disclosing further, the Finance Minister Harpal Singh Cheema said that in a separate action, another FIR was registered on September 9, 2025, against M/s K K Industries and its associates Chandan Singh, Amandeep Singh, and Mukesh, for their role in another major bogus billing scam. The investigation revealed that M/s K K Industries was issuing fake invoices without the actual movement of goods, thereby facilitating the wrongful passing and availment of ITC to beneficiary firms. “Investigators cross-verified GST returns, e-way bill data, and conducted a physical verification of the premises, which exposed the fraudulent nature of the transactions. The firm is linked to fraudulent transactions worth Rs 75 crore, leading to a tax evasion of Rs 13.64 crore”, he added.
Furthermore, FIR No. 182 was registered on September 14, 2025 at Bathinda against Deepak Singla and Vivek Singla, both identified as passers of iron and steel goods in the Bathinda region. Investigations revealed that the accused were involved in the passing of unaccounted goods without proper billing, thereby facilitating large-scale evasion of tax and causing loss to the state exchequer.
In addition to these FIRs, the Taxation Department has intensified its field-level enforcement. In a special three-day checking operation at Mandi Gobindgarh, State Investigation and Preventive Units (SIPUs) detained 108 vehicles for verification. Twenty-six of these vehicles have already been penalized with a cumulative fine of Rs 50 lakh, with proceedings for the remaining vehicles still underway. This targeted drive focused on high-risk sectors like iron and steel, cement, and auto parts, sending a clear message that tax evasion will not be tolerated.
Reiterating the Punjab Government’s commitment to eradicating the menace of bogus billing and tax evasion, the Finance Minister Harpal Singh Cheema said that the FIRs registered against fraudulent firms and the large-scale checking drives demonstrate the seriousness of the State in protecting its revenue base.” He emphasized Punjab’s zero-tolerance approach, which combines technology-driven monitoring with physical enforcement. Cheema asserted that such deterrent actions will continue with even greater intensity to ensure genuine business practices are encouraged, honest taxpayers are safeguarded, and public revenues are fully protected for the welfare of the people of Punjab.
