DGGI Busts Rs 27 Cr Fake ITC Racket in Vizag

The Directorate General of GST Intelligence (DGGI), Visakhapatnam Zonal Unit, has busted a fake Input Tax Credit (ITC) racket involving Rs 27.07 crore and arrested the prime accused in the case.

According to officials, the investigation has so far established that fraudulent ITC amounting to Rs 27.07 crore was availed, while Rs 15.30 crore was illegally passed on to other entities. Mallikarjuna Manoj Kumar was identified as the controller and operator of the network based on documentary evidence and statements recorded during the probe.

Deputy Director of DGGI, Visakhapatnam, Swethaa Suresh, said the accused admitted that the transactions were carried out pursuant to his instructions and that the firms involved had no genuine business activity or actual supply of goods or services. The entities were created solely to facilitate the illegal transfer of ITC, she added.

The accused has been booked under relevant provisions of the GST Act. This is the fourth arrest made by the DGGI, Visakhapatnam Zonal Unit, in the current financial year, highlighting its continued crackdown on GST evasion and fake ITC frauds.