Hyderabad Police Nabs 5 GST Officials Allegedly Found Involved in Rs 46 Crore GST Refund Fraud

Hyderabad: While probing 7 cases pertaining to the GST refund fraud involving amounts to the tune of Rs 46 crore, the Hyderabad police have arrested 5 GST officials. According to the police, the Hyderabad Central Crime Station (CCS) arrested the officials of different GST circles in the state. The arrests were made in connection with the seven cases registered by the police against seven bogus electric bike manufacturing companies.

The arrested include 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.

Police are further probing the cases

According to police, the officials had conspired with the accused, who had started bogus electric bike manufacturing units. The accused started bogus firms by collecting electricity bills from the owners of the premises in Hyderabad. They later registered firms in the GST portal by submitting fake and fabricated rental agreements.

The accused criminally conspired with their tax consultant Chiraag Sharma, created fake and fabricated invoices, e-way bills and inward supply bills in the name of fake and bogus firms, showing non-existent companies as existing and filed GST refunds by offering bribes to the state government GST officials and claimed the GST refunds.

Police said the accused caused wrongful loss to the government exchequer, without manufacturing e-bikes. The GST officials criminally conspired with other accused persons, accepted bribes, and misappropriated the public funds by using their official power deliberately disobeying the rules and procedures laid down in their department.

The police had earlier arrested Chiraag Sharma, tax consultant from New Delhi, Vemireddy Raja Ramesh Reddy, and Mummagari Giridhar Reddy, both natives of Kadapa district of Andhra Pradesh and Kondragunta Vineel Chowdary, native of Palnadu district of Andhra Pradesh.