Special fraud detection unit will be set up in Punjab: Finance Minister Cheema

August 4, 2025

Chandigarh: Punjab Finance Minister Harpal Cheema on Monday announced the proposal to establish a state-level Special Fraud Detection Unit, (SFDU) headquartered in Patiala city.  

Sharing details about the unit Cheema said that the unit would streamline the detection and bring consistency in investigating complex cases involving Goods and Services Tax (GST) violations. 

Minister Cheema said the SFDU would be tasked with uncovering and probing high-value GST frauds, with particular focus on breaking down circular trading operations, unearthing anonymous transactions, and eliminating the practice of fake invoicing. 

“The unit will be empowered to initiate stringent enforcement actions, including cancellation of suspicious GST Identification Numbers (GSTINs), blocking wrongful claims of Input Tax Credit (ITC), and recommending prosecution against offenders to uphold legal accountability,” he said. 

Minister Cheema highlighted the SFDU would leverage advanced technologies, including artificial intelligence (AI), data analytics and centralised backend operations, to enhance its detection capabilities. 

The unit will conduct comprehensive data mining and pattern recognition across the state to identify anomalies in tax returns, transaction networks, and goods movement. 

The minister said the unit would use data-driven red flags to selectively verify only dubious or miscreant taxpayers, protecting honest taxpayers from unnecessary scrutiny. 

This strategic approach, Cheema emphasised, aims to strike a balance between effective enforcement and taxpayer facilitation, ensuring a more efficient and taxpayer-friendly administration. 

Detailing the composition of the SFDU, Cheema said the unit would comprise a multidisciplinary team consisting of experienced tax officers, skilled IT professionals, a chartered accountant and a legal officer. 

He said the team would be equipped with real-time access to critical datasets such as GSTN information, e-way bill tracking, toll records, and RFID trail analytics, enabling prompt and precise action against tax evasion.