Shah Batteries director arrested for alleged ₹98.47-crore fake GST credit fraud
HYDERABAD: The Telangana Commercial Taxes Department arrested TA Aamir Hasan, director of Shah Batteries, for allegedly creating a network of 17 bogus firms to generate fraudulent Input Tax Credit (ITC) worth ₹98.47 crore.
According to officials, preliminary investigations revealed that Aamir Hasan, son of Abdul Ahad Babu and director of Shah Batteries (GSTIN: 36ABNCS3639N1ZK), allegedly floated 17 shell firms through associates. He then allegedly used these entities to create and transfer fake GST input tax credit to Shah Batteries.
Furthermore, officials found that the firms voluntarily cancelled their GST registrations after transferring the credits. Data analysis also revealed that a single computer filed the monthly GST returns of all 17 firms. As a result, investigators suspect a coordinated effort to generate fraudulent tax credits and evade taxes.
Turnover of Nearly ₹571 Crore
The department said Shah Batteries reported a turnover of nearly ₹571 crore between April 2025 and April 2026.
However, the company allegedly paid only ₹45.42 lakh in taxes through cash during the same period. Instead, it reportedly used fraudulent ITC worth ₹98.47 crore to meet most of its GST liability.
Consequently, officials believe the transactions caused a substantial loss to the government exchequer.
Arrest After Two Months of Notices
Officials said they gave Aamir Hasan multiple opportunities over the past two months to correct the irregularities and compensate for the revenue loss.
However, authorities decided to take action because of the seriousness of the alleged offence. Therefore, the department arrested him under the provisions of the Telangana Goods and Services Tax Act, 2017, after completing the required legal procedures.
Authorities later produced him before a competent judicial authority, which remanded him to judicial custody on Tuesday.
Investigation Continues
Meanwhile, the Commercial Taxes Department said it will continue taking stringent action against individuals involved in fake invoicing, bill trading, and fraudulent ITC claims.
In addition, officials are examining the affairs of M/s Shah Batteries to determine the full extent of the alleged fraud. They are also investigating the role of other individuals who may have participated in the scheme.
