DGGI arrests Ravitej Projects CEO in ITC fraud case
HYDERABAD: The Directorate General of GST Intelligence (DGGI) has arrested Dr. Mohammed Meeran in connection with an Input Tax Credit (ITC) fraud amounting to Rs 25 crore.
On the basis of material gathered during the investigation, including statements recorded, Mohammed Meeran has been identified as the CEO of Ravitej Projects. He allegedly implemented a systematic scheme to reduce output GST liability by issuing credit notes without a valid taxable basis, resulting in a reported loss to government revenue.
Financial analysis has revealed that the credit notes issued by Dr. Meeran lacked a taxable basis, were not supported by any genuine discount agreement or commercial reason, and did not include the required ITC reversal by the recipient as mandated by the CGST Act.
The DGGI alleged fraudulent availment of Input Tax Credit (ITC) amounting to Rs 25 crore. During the investigation, the accused admitted that the scheme provided a financial benefit by reducing GST liability and was used across multiple tax periods. Using fake credit notes to lower the tax owed and making false claims for tax credits led to significant losses for the government because less tax was paid and more was claimed back.
The DGGI further alleged that Dr. Meeran kept books of accounts at an undeclared location to evade scrutiny, gave inconsistent statements during the investigation, and tried to shift responsibility to others. Notably, the company’s registered premises were the accused’s residence, where no records were found, constituting a clear violation of Section 35 of the CGST Act, 2017.
Dr. Meeran was released on bail with two sureties. He has been instructed to deposit his passport with the court, obtain prior permission before leaving India, and appear before customs officials as required.
