Massive Rs 217 crore GST fraud uncovered in Andhra, Telangana by DGGI

The DGGI has uncovered a massive Rs 217 crore GST fraud in Andhra Pradesh and Telangana. A syndicate operated 72 fictitious firms to illegally claim Input Tax Credit. Two key operatives have been arrested, while the mastermind is absconding.

The Directorate General of GST Intelligence (DGGI), has uncovered a massive GST fraud worth Rs 217 crore following surprise raids across Andhra Pradesh and Telangana. According to a press release, acting on specific intelligence inputs regarding suspicious GST registrations and irregular credit flows, DGGI officials launched coordinated searches and investigations using advanced data analytics and field verification.

Modus Operandi of the Syndicate

The probe revealed a well-organised syndicate operating a network of 72 fictitious GST-registered entities involved in fraudulent availment and passing of Input Tax Credit (ITC).

As per the release, these shell firms were created using Aadhaar and PAN details of unsuspecting individuals, who were falsely shown as proprietors. Temporary or non-functional premises were rented using fabricated documents to obtain GST registrations and open bank accounts, which were later abandoned or left inactive.

Key Individuals Identified and Arrested

Mastermind on the Run

The investigation identified Dhantla Aadi Reddy, alias Anji Reddy, as the mastermind behind the operation. He is currently absconding.

The syndicate centrally controlled GST filings, invoice generation, and credit transfers through manipulated login credentials.

Arrests of Key Operatives

Two key operatives-Siddagoni Prabhaker and Ramavath Nagaraju Naik-have been arrested under relevant provisions of the CGST Act, 2017. Nagaraju Naik reportedly handled on-ground activities such as arranging premises and onboarding dummy proprietors, while Prabhaker facilitated GST registrations and handed over system access to the syndicate.

Financial Impact and Further Probe

The release further stated that the network generated fake invoices without actual supply of goods or services, enabling fraudulent ITC claims of Rs 217 crore linked to transactions worth Rs 1,472 crore. Such activities cause significant revenue loss and disrupt fair competition.

DGGI said the offences are cognizable and non-bailable, and further investigation is underway to trace additional beneficiaries and financial links. The agency reaffirmed its commitment to cracking down on tax evasion and safeguarding the integrity of the GST system. (ANI)

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