Hyderabad DGGI Seizes Rs 20 Crore Villa in Major Online Betting GST Evasion Probe
The Directorate General of GST Intelligence (DGGI), Hyderabad zonal unit, has taken decisive action by provisionally attaching a luxurious villa in Kokapet, estimated to be worth approximately Rs 20 crore. This property is linked to YS Prabhu Kumar, the director of Wegofin Digital Solutions, as part of a significant investigation into a massive online betting-linked GST evasion case.
Legal Action and Property Details
DGGI has formally communicated with the commissioner and inspector general of registration and stamps, issuing a directive that the attached property cannot be sold or transferred without prior approval from the authorities. This legal move follows Prabhu Kumar's failure to appear before investigators for questioning.
The property in question is specifically identified as Villa No. 6 at Myscape Courtyard in Puppalaguda, Gandipet mandal, located in Rangareddy district. Official records show that this villa was registered in Prabhu Kumar's name in November 2025, with a declared value of Rs 6.5 crore at the time of registration.
Investigation Scope and Allegations
Sources within the registrations department have confirmed that this attachment was executed under Section 83 of the CGST Act, 2017. It forms a crucial part of an ongoing, extensive probe into a syndicate that is alleged to have been offering online gaming services while systematically evading GST payments.
In official communications sent to the registrations department, DGGI has identified Prabhu Kumar as "one of the masterminds in the syndicate". Investigators allege that he played an instrumental role in routing funds through multiple bank accounts specifically to avoid GST obligations.
Massive Financial Scale and Network
The investigation has uncovered staggering financial figures, with the total GST evasion pegged at an astonishing Rs 6,342 crore. The probe has widened significantly, with officials identifying approximately 177 shell companies and dummy merchant entities through which nearly Rs 23,000 crore was allegedly routed.
This extensive network has brought intense scrutiny upon:
- Payment aggregators
- Payment gateways
- Banks that facilitated transactions
These entities are being examined for their role in processing transactions linked to what authorities describe as an international online gaming network.
Company Involvement and Alleged Methods
Wegofin Digital Solutions and its founders, YS Prabhu Kumar and Vennapusa Rajasekhar Reddy, have been formally named in this case. Investigators allege that the company enabled transactions for banned gaming apps using sophisticated methods to conceal financial trails, including:
- Non-KYC-compliant accounts
- Fake invoicing practices
- Complex fund routing through shell entities
The primary objective of these alleged activities was to mask money trails and evade GST payments systematically.
Government Revenue Protection
Authorities have emphasized that the provisional attachment of the villa aims to safeguard government revenue. This preventive measure ensures that the property cannot be disposed of while investigations continue, thereby protecting potential recovery of evaded taxes.
The case represents one of the most significant GST evasion investigations in recent times, highlighting the challenges authorities face in regulating digital transactions and online gaming platforms that operate across international boundaries while maintaining compliance with domestic tax laws.
