In a significant crackdown on organized tax evasion, the Directorate General of GST Intelligence (DGGI) in Hyderabad has arrested two individuals, including a Congress party functionary, in separate Goods and Services Tax (GST) fraud cases involving a staggering sum exceeding Rs 50 crore. The arrests were made on Wednesday following intensive data analysis and coordination between agencies.
Congress Leader Accused of Diverting Passenger GST
Muthyala Sunil Kumar, the Congress party's in-charge for the Balkonda constituency, was taken into custody by DGGI officials. Sunil Kumar, who is also the Managing Director of Orange Passenger Transport Private Ltd, stands accused of a major financial violation. According to the investigation, his company collected a substantial Rs 28.24 crore as GST from passengers using its inter-state bus services but failed to deposit this amount with the government treasury.
Officials revealed that the statutory deadline for remitting the tax had passed over three months ago, yet the funds were not submitted. Orange Tours and Travels, operated by his company, ran bus services across South Indian states, Maharashtra, and Goa, alongside cargo operations. Sunil Kumar had contested the 2023 Telangana Assembly elections from Balkonda in Nizamabad district on a Congress ticket but lost to BRS leader Vemula Prashanth Reddy.
Bengaluru Businessman Masterminds Fake Invoice Racket
In a parallel operation conducted the same day, DGGI authorities arrested N Chethan, the Managing Director of Bengaluru-based Trillion Lead Factory Pvt Ltd. He is alleged to be the mastermind behind a sophisticated fraud involving fake Input Tax Credit (ITC). The company, which manufactures lead, zinc, tin products, and alloys, is implicated in generating bogus invoices worth Rs 22 crore to claim illegal tax credits.
"Chethan was the mastermind of Rs 22 crore fake ITC fraud," the DGGI stated explicitly in an official release. This case highlights the ongoing battle against networks that create fictitious transactions to defraud the tax system.
Legal Proceedings and Bail
Both accused were booked under the relevant sections of the Central GST Act, 2017, and were arrested from Hyderabad. They were subsequently produced before a local court. Sunil Kumar was granted bail by the court following the hearing. Chethan's legal team also moved a bail application, which was under consideration at the time of the report.
A DGGI official confirmed the developments, noting that further investigation is actively underway. The probe now aims to trace all beneficiary firms linked to these scams and recover the evaded revenue to the fullest extent.
DGGI's Stern Warning to Fraud Networks
The Hyderabad zonal unit of DGGI has signaled a stringent approach towards organized GST evasion. An official emphasized that through advanced data analytics and inter-agency collaboration, specific intelligence is being developed to target the architects of such large-scale frauds.
"DGGI Hyderabad has intensified enforcement actions against organised GST evasion cases. Through data analytics and inter-agency collaborations, specific intelligence will be developed and enforcement will be initiated against masterminds of organised GST evasion rackets to dismantle large scale inter-state, organised fraud networks," the official stated. This move underscores the government's resolve to clamp down on complex, multi-state tax evasion syndicates operating in the country.
