Raipur, September 19, 2025/The State GST Department has detected a syndicate creating bogus firms and bogus bills using the GST Analytics and Intelligence Network and GST Prime Portal. Its mastermind is Mo. Farhan Sorathia, who worked as a tax consultant for GST. Due to this syndicate, the state was suffering a loss of crores of rupees in tax revenue every month.
The State GST’s B.I.U. team had been working on this case for a month. An investigation was conducted at the office of mastermind Mo. Farhan Sorathia on September 12. During the investigation, information about 172 firms was received from here. Farhan had kept his 5 office staff to register the firms, file returns and prepare e-way bills. Apart from this, evidence of preparing rent deed, consent letter, affidavit for bogus registration was also found from the office of the mastermind.
E-way bills of 822 crores were generated from only 26 bogus firms, while a turnover of only 106 crore rupees was shown in the returns. The preliminary assessment is that the state will suffer a loss of GST of Rs 100 crore from these firms alone. According to the documents received from here, registration has also been taken within the state and in Punjab, Assam, Manipur, Odisha. Bogus documents like rent deed and consent letter were also prepared for registration. Bogus supply bills and e-way bills were being issued through these firms.
On the information of hiding documents related to Mo. Farhan’s bogus firms, the department conducted a search (investigation) at the residence of Farhan’s uncle Mo. Abdul Latif Sorathia on September 17. There, the officers found notes worth Rs 1 crore 64 lakh and 4 biscuits of 400 grams of gold. The officials of the department have seized it and informed the Income Tax Department.
The GST officers are calculating the amount of GST fraud of crores of rupees from these firms. In this case, many brokers, scrap dealers and companies taking advantage of input tax credit are also under the purview of the department’s investigation. The State Tax Department is conducting a thorough investigation of the matter and further legal action is in progress.
GST theft of crores of rupees revealed: GST theft committed by creating more than 170 bogus firms
