Mumbai Businessman Loses ₹31 Lakh to Fraudulent Tax Consultants Promising to Pay GST Dues

A 56-year-old businessman from Goregaon, Mumbai, has filed a police complaint alleging that two self-proclaimed tax consultants cheated him of Rs 31 lakh under the pretext of paying his GST and income tax dues on his behalf. The Goregaon police have registered a case of cheating and begun an investigation into the incident.

According to the police, the businessman runs a fabrication business and came to know one of the accused through a friend’s company. The accused had been working as a tax consultant for the friend’s firm since 2016, which made the complainant trust him.

In 2018, he hired the same person to handle his company’s tax filings and GST returns. The accused’s elder brother also worked with him and jointly managed the complainant’s financial documentation and tax compliance.

Between 2019 and 2020, the businessman faced severe financial difficulties due to the Covid-19 pandemic and was unable to pay his tax dues. When he explained his situation to the consultants, they offered to pay his GST and income tax liabilities on his behalf if he transferred the funds to them. Believing their assurance, the businessman transferred Rs 27.8 lakh to their account for payment of pending taxes.

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In May 2023, the businessman was shocked to receive a notice from the GST Department, informing him that his taxes for 2019–2020 had not been paid. The notice also demanded interest and penalties for the delay.

A few months later, in February 2024, he received another notice for non-payment of GST for 2020–2021. To make matters worse, the Income Tax Department sent a show-cause notice in August 2023, stating that tax on his business profits had not been paid.

When the businessman confronted one of the accused, he was told that the matter could be “settled” for an additional Rs 1 lakh. The complainant paid the amount, but soon after, the accused switched off his phone and went missing. His brother later claimed that he did not know his whereabouts.

After realizing he had been cheated, the businessman approached the Goregaon Police Station and lodged a complaint. He told the police that the accused never paid his taxes and also caused him to incur Rs 3.29 lakh in penalties. The police are investigating the case and searching for the absconding suspects.

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