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Karnataka: GST fraud network worth ₹410 crore busted; one man arrested, partner at large
The Karnataka Commercial Taxes Department arrested Mohammed Tauqeer for leading a GST fraud network that generated ₹410 crore in fraudulent ITC across Karnataka, Andhra Pradesh, and Tamil Nadu. Tauqeer was arrested on April 22, 2026, after attempting to flee, and was remanded to 14 days in judicial custody; his accomplice Shaik Jakeer Hussain alias Basha remains absconding.
Why It Matters
The case highlights efforts to curb complex GST fraud networks and the potential loss to government revenue from ineligible ITC. It also underscores cross-state dimensions and investigative challenges in such schemes.
Timeline
3 Events
Modus operandi and network scope
April 22, 2026
The department described the network's modus operandi as well-structured and evolving, involving frequent creation and cancellation of GST registrations within short durations, continuous changes of mobile numbers and bank accounts, and operation through multiple-layered entities functioning in isolated silos to evade detection. The accused routed fake ITC to various entities, including previously arrested operatives, who in turn passed it on to works contractors and traders for offsetting tax liabilities. This mechanism enabled beneficiaries to discharge tax liabilities through ineligible ITC instead of cash payments, causing losses to the government exchequer. The financial magnitude is ₹410 crore in fraudulent transactions with ₹102.5 crore of wrongful ITC.
Accomplice Shaik Jakeer Hussain alias Basha absconding
April 22, 2026
Shaik Jakeer Hussain alias Basha, the accused accomplice and alleged mastermind, managed to flee overseas and remains absconding. Authorities say efforts are underway to trace him through appropriate legal channels. Hussain is originally from Chittoor, Andhra Pradesh, with Tauqeer in Bengaluru and Basha operating from Andhra Pradesh.
Arrest of Mohammed Tauqeer; remand to judicial custody
April 22, 2026
The Enforcement Wing of the Karnataka Commercial Taxes Department arrested Mohammed Tauqeer when he attempted to abscond. He was produced before the Special Court for Economic Offences in Bengaluru and remanded to judicial custody for 14 days. Investigations indicate Tauqeer and his accomplice Shaik Jakeer Hussain alias Basha are the principal masterminds behind a GST fraud network that generated and routed fraudulent Input Tax Credit across Karnataka, Andhra Pradesh, and Tamil Nadu. The network floated bogus firms and issued fake tax invoices without actual supply of goods, enabling fraudulent ITC totaling ₹102.5 crore within a ₹410 crore fraudulent transaction. The modus operandi includes frequent creation and cancellation of GST registrations, changes of mobile numbers and bank accounts, and operation through multiple-layered entities to evade detection.