Chhattisgarh Tax Evasion Scandal: 170 Bogus Firms Exposed

The Chhattisgarh CG SGST department uncovered a major tax evasion racket involving over 170 fraudulent firms, orchestrated by GST consultant Mohmmad Farhan Sorathia. The scheme, which generated fake registrations and e-way bills, resulted in significant financial losses to the state. Investigations are ongoing.

Devdiscourse News Desk | Raipur | Updated: 19-09-2025 20:29 IST | Created: 19-09-2025 20:29 IST

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The Chhattisgarh State Goods and Services Tax (CG SGST) department has exposed a significant tax evasion scandal, revealing an elaborate scheme involving over 170 sham companies, a government official announced on Friday.

Masterminded by GST consultant Mohmmad Farhan Sorathia, the fraudulent operation cost the state exchequer hefty monthly losses by creating counterfeit registrations and bills. An investigation disclosed that just 26 of these fake firms issued e-way bills totaling Rs 822 crore, despite declaring a turnover of only Rs 106 crore, resulting in an estimated GST revenue loss of Rs 100 crore, according to officials.

The racket spanned multiple states, with fake documents aiding GST registrations. The probe uncovered similar fraudulent activities in Punjab, Assam, Manipur, and Odisha. Further searches led to the seizure of Rs 1.64 crore cash and gold from Sorathia's uncle, with ongoing comprehensive legal actions being pursued.

(With inputs from agencies.)