Kumar Bahukhandi
Rs 1.64 crore in cash and 400 grams of gold were seized during the investigation.
Raipur: The State GST Department, using the GST Analytics and Intelligence Network and the GST Prime portal on Friday September 19, 2025 , has uncovered a syndicate involved in the preparation of bogus firms and bogus invoices. The mastermind is Mohammad Farhan Sorathia, who worked as a GST tax consultant.
This syndicate was causing the state to lose crores of rupees in tax revenue every month.
The State GST BIU team has been working on this case for a month. An investigation was conducted on September 12th at the office of the mastermind, Mohammad Farhan Sorathia. During the investigation, information about 172 firms was obtained. Farhan had employed five office staff to register firms, file returns, and prepare e-way bills. Furthermore, evidence of the mastermind’s office preparing lease agreements, consent letters, and affidavits for the bogus registrations was also found. E-way bills worth ₹822 crore were generated from 26 bogus firms, while the returns showed a turnover of only ₹106 crore.
Preliminary estimates indicate a GST loss of ₹100 crore to the state from these firms alone. Documents obtained indicate registrations within the state and in Punjab, Assam, Manipur, and Odisha. Bogus documents, such as lease agreements and consent letters, were also prepared for registration. Bogus supply bills and e-way bills were being issued through these firms.
On September 17th, following information that Mohammad Farhan was concealing documents related to his fake firms, the department conducted a search at the residence of Farhan’s uncle, Mohammad Abdul Latif Sorathia. Officials found ₹1.64 crore in currency notes and four biscuits weighing 400 grams of gold. The department seized these and informed the Income Tax Department.
GST officials are estimating GST fraud against these firms amounting to crores of rupees. Several brokers, scrap dealers, and companies that took advantage of input tax credits are also under the department’s scrutiny. The State Tax Department is conducting a thorough investigation into the matter, and further legal proceedings are underway.
