Hyderabad: 2 arrested for ₹177cr GST scam
What's the story
The Directorate General of Goods and Services Tax Intelligence (DGGI) has arrested two men in Hyderabad for their alleged involvement in a massive fake Input Tax Credit (ITC) scam worth around ₹177 crore. The accused, Siddagone Prabhaker and Ramavath Nagaraju Naik, are said to have run 66 shell firms as part of an organized GST evasion network. The arrests were made by DGGI's Visakhapatnam Zonal Unit in Hyderabad.
Operation details
Arrests made based on specific intelligence
The arrests were made based on specific intelligence developed through data analytics and inter-agency collaboration, targeting inter-state fraud networks. An official press release from DGGI said, "Two persons involved in a fake ITC racket of about ₹177 crore have been arrested under the provisions of the CGST Act, 2017." The enforcement action is part of a broader effort to dismantle large-scale inter-state organized fraud structures and maintain sustained pressure on tax evasion syndicates.
Ongoing investigation
Another accused still at large
Another alleged mastermind of the fake ITC racket, Aadi Reddy alias Anji Reddy, is currently absconding. The DGGI's crackdown on organized GST evasion is part of a wider effort to tackle tax evasion syndicates and bring those involved to justice. The arrests highlight the agency's commitment to using data analytics and inter-agency collaboration in its fight against financial fraud.