Uttar Pradesh: Adityanath Orders Crackdown on Shell Companies
CM Yogi Adityanath reviews a meeting of Uttar Pradesh revenue department. (Image credit UP Info dept)
CM Yogi Orders Crackdown on Shell Companies, Emphasizes Transparent and Tech-Driven Tax Governance
By TRH News Desk
Lucknow, June 7, 2025 — Uttar Pradesh Chief Minister Yogi Adityanath on Saturday ordered a strict crackdown on shell companies and fraudulently registered firms, calling such actions an “unforgivable misuse” of facilities meant for genuine traders.
Chairing a high-level review meeting of the State Tax Department, Adityanath emphasized the need for transparent, technology-driven enforcement and zero tolerance for tax evasion, which he termed a “national crime” that hampers development and welfare schemes.
“Revenue is not just a number; it is the foundation of development,” said the Chief Minister, urging officials to act with responsibility and sensitivity.
Key Directives Issued by Adityanath:
- Action Against Shell Firms: The CM directed officials to identify and act against suspicious firms. Registrations under Central GST (CGST) found to be irregular should be flagged to the Centre for cancellation. For State GST (SGST) cases, detailed investigations must be conducted, and if fraud is established, registrations should be canceled and FIRs filed.
- Mandatory On-Site Inspections: All newly registered firms will now undergo on-ground verification to prevent fake entities from exploiting the tax system and harming legitimate businesses.
- Area-Wise Strategy for Tax Collection: Citing that GST is a consumer-based tax, the CM said zones with higher population density must naturally yield higher collections. He ordered the preparation of special strategies for regions with lower-than-expected tax performance.
- Field-Level Engagement: Additional, Joint, and Deputy Commissioners were instructed to personally interact with local traders to foster trust, encourage compliance, and strengthen tax culture.
Performance Snapshot:
Officials informed the Chief Minister that GST and VAT collections for April–May 2025 stood at ₹18,161.59 crore, against the ambitious annual target of ₹1,75,725 crore.
Praising the performance of 14 zones — including Lucknow, Ayodhya, Bareilly, Agra, Ghaziabad, Gautam Buddha Nagar, Meerut, Jhansi, and Saharanpur — which have achieved over 60% of their targets, CM Yogi encouraged continued momentum.
However, zones such as Varanasi-I, Prayagraj, Kanpur-II, Etawah, Aligarh, and Moradabad, which posted collections below 50%, were flagged for urgent review. The CM ordered that a special report be prepared and submitted to the state headquarters for in-depth analysis in coordination with field-level experts.
Adityanath reiterated that every officer must uphold the integrity of the tax system by taking proactive, reform-oriented steps. “Tax compliance is essential for a fair and robust economy. Fake companies must not be allowed to undermine the honest taxpayer,” he stressed.
With the state pushing for a record revenue target in FY 2025–26, the Chief Minister’s directive signals a decisive move towards tightening enforcement, boosting state revenues, and ensuring a more equitable and transparent business environment across Uttar Pradesh.
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