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Hyderabad police busts a GST refund fraud worth crores, arrests seven

Gst Refund Fraud

Hyderabad: Hyderabad police busted a GST fraud and arrested Five GST Officials who were indulged in fraud. Along with the GST officials, four persons who flouted seven sham companies were also arrested on Saturday in connection with the case.

The Hyderabad Central Crime Station(CCS), Detective Department(DD) identified the GST officials involved in the GST refund fraud as – 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, Dy. State Tax Officer, GST, Madhapur-II Circle and Marri Mahitha, Senior Assistant, Madhapur-III Circle. And the other four are Chiraag Sharma, Tax consultant hailing from New Delhi, Vemireddy Raja Ramesh Reddy, Mummagari Giridhar Reddy and Kondragunta Vineel Chowdary hailing from Andhra Pradesh.

Investigation revealed that the accused created shell electric bike manufacturing units with various firm’s names by collecting electricity bills from the premises owners in Hyderabad locality. Subsequently, they registered the firms in GST Portal by submitting fake and fabricated rental agreements.

Flouted Seven sham companies and created fake invoices

Hyderabad police released the list of Seven bogus electric bike manufacturing units created by the accused- M/s Vinardh Automobiles Pvt. Ltd,M/sYoko electric bikes, Crox Electric Bikes, M/s Grow more Electric Vehicles ,M/s Apex Electric Bikes, M/s Supriya Electric Bikes and M/s. Magnum Electric Bikes.

“The accused persons criminally conspired with their Tax consultant Chiraag Sharma created fake and fabricated invoices, e-way bills Part-A, Part-B and inward supply bills on the name of fake and bogus firms, showing the fictitious company as existing and filed GST refunds by offering the bribes to the State Government GST officials and claimed the GST Refunds,” said Hyderabad Central Crime Station(CCS) in an official statement.

Preliminary investigation suggests that the accused persons claimed a refund and gained wrongfully and caused the wrongful loss to the Government Exchequer without manufacturing the E-Bikes.

The accused GST officials illegally exploiting their government jobs criminally conspired with other accused persons, accepted bribes, and misappropriated the public funds, taking advantage of their position.