The Directorate General of GST Intelligence (DGGI), Visakhapatnam Zonal Unit, on Thursday informed that it has arrested T. Venkata Swaroop Kumar for his role in the massive fake Input Tax Credit (ITC) racket.
According an official release this is the first arrest by the unit for the financial year 2026–27,
Investigations revealed that the accused operated a network of dummy firms that claimed to provide “works contract services” but existed only on paper to pass on fraudulent tax benefits. The arrest followed the earlier apprehension of another mastermind, Mallikarjuna Manoj Kumar, and D.N. Srinivasa Reddy, a partner at the principal beneficiary firm, M/s Sri Progressive Projects.
Detailed financial probes established that the controlled firms fraudulently claimed ITC worth ₹9.62 crore and passed on ₹7.49 crore to the beneficiary company. Authorities found that these entities lacked the actual capacity or equipment to perform large-scale contracts mentioned in their invoices. Instead, the network used systematic layering and circular fund routing to move money through various accounts to mimic real business transactions, the officials added.
The accused has been charged under multiple sections of the CGST Act, 2017, for non-bailable offences.
