Five Telangana GST Officials Arrested for 46 Cr GST Refund Fraud

Hyderabad: Hyderabad police have cracked down on a GST refund fraud, culminating in the arrest of five GST officials. This operation comes in response to seven cases of GST refund fraud, amounting to a staggering Rs 46 crore.

The arrests were made by the Hyderabad Central Crime Station, Detective Department, targeting officials from various circles within the state. Among those apprehended are Peetala Swarna Kumar, Deputy Commissioner, GST, Nalgonda Division, Kelam Venu Gopal, Assistant Commissioner (State Taxes), Abids Circle, Podila Viswa Kiran, Assistant Commissioner (State Taxes), Madhapur-1 Circle, Vemavarapu Venkata Ramana, Deputy State Tax Officer, GST, Madhapur-II Circle, and Marri Mahitha, Senior Assistant, Madhapur-III Circle.

The arrests stem from a complex web of fraudulent activities perpetrated in collusion with seven bogus electric bike manufacturing companies. These companies, operating under false pretenses, conspired with the accused officials to siphon funds from the government exchequer.

According to police reports, the modus operandi involved the establishment of bogus electric bike manufacturing units, facilitated by fabricated rental agreements and fake invoices. The accused officials, along with their accomplices, orchestrated a scheme to claim GST refunds through illicit means, involving bribery and manipulation of official procedures.

The accused, including a tax consultant identified as Chiraag Sharma from New Delhi, alongside individuals from Andhra Pradesh, exploited loopholes in the system to wrongfully obtain refunds without fulfilling the necessary manufacturing requirements.

The seven companies implicated in this fraud include Vinardh Automobiles Pvt. Ltd., Yoko Electric Bikes, Crox Electric Bikes, Growmore Electric Vehicles, Apex Electric Bikes, Supriya Electric Bikes, and Magnum Electric Bikes.

This development underscores the critical importance of vigilance and stringent measures to combat financial crimes. The Hyderabad police are committed to uncovering such fraudulent activities and ensuring accountability within the GST system. Investigations into this case are ongoing as authorities strive to uphold the integrity of financial systems and protect public funds. Stay tuned for further updates on this unfolding investigation.