Hyderabad: Directorate General of GST Intelligence (DGGI) Visakhapatnam zonal unit, has uncovered fraudulent input tax credit (ITC) worth 5.83 crore and arrested DN Srinivasa Reddy, managing partner of Hyderabad headquartered telecommunications company Sri Progressive Projects. He was remanded in judicial custody on Saturday.
According to DGGI officials, Reddy, a resident of Hyderabad, availed the input tax credit on the strength of invoices issued by non-existent firms with Telangana and Andhra Pradesh addresses that never supplied goods or services.
The investigation revealed that several bogus invoices were generated under the cover of subcontracting arrangements orchestrated by a dummy entity controlled by Reddy’s associate, Mallikarjuna Manoj Kumar, from Hyderabad. Kumar allegedly kept a three per cent commission and routed the remaining funds through a network of mule bank accounts. Kumar was arrested from Hyderabad on Dec 22 and remanded to judicial custody in Visakhapatnam the next day in the case.
Reddy was booked under Section 132(1)(c) of the Central GST Act, 2017, which classifies fraudulent ITC claims as cognisable and non-bailable offences. He was arrested under Section 69 of the CGST Act.
The operation marked the fifth arrest secured by the Visakhapatnam unit of DGGI in the current financial year.
Source from: https://timesofindia.indiatimes.com/city/hyderabad/dggi-arrests-city-based-telecom-firm-partner-for-gst-fraud/articleshowprint/126456871.cms
