Punjab to set up special fraud detection unit in Patiala to tackle GST violations: Harpal Singh Cheema
In a major step towards institutionalizing tax enforcement in the state, Punjab’s Finance, Planning, Excise, and Taxation Minister Harpal Singh Cheema has announced the proposal to establish a State-Level Special Fraud Detection Unit (SFDU). The unit will be headquartered in Patiala and will focus on identifying and investigating complex GST (Goods and Services Tax) violations.
Cheema stated that this dedicated unit will help streamline the detection process, bring consistency to investigations, and ensure thorough scrutiny of suspicious transactions. The move is part of Punjab’s broader strategy to curb rising tax evasion, particularly involving fake firms and fraudulent refund claims.
The announcement comes in the backdrop of rising GST-related frauds across India. A notable case in 2021, handled by Delhi Police, uncovered a ₹940 crore scam involving over 340 fake firms and frozen accounts with ₹48 lakh in fake refunds. Experts estimate that tax evasion through such fraudulent practices amounts to ₹1.5 lakh crore annually.
By setting up the SFDU, the Punjab government aims to close loopholes, strengthen fiscal transparency, and hold offenders accountable. Cheema, a senior Aam Aadmi Party leader, has been vocal about ensuring integrity in public finance. His push for this enforcement unit also reflects the government’s intent to safeguard state revenues amid ongoing political and economic challenges.