DGGI Arrests Two Individuals in Rs 177 Crore GST Fraud Involving Fake Companies

AMARAVATI, Mar 26: The Directorate General of Goods and Services Tax Intelligence (DGGI) has arrested two persons linked to a large fake Input Tax Credit (ITC) racket as part of an intensified crackdown on organised GST evasion.
The arrests were made by DGGI’s Visakhapatnam Zonal Unit in Hyderabad based on specific intelligence developed through data analytics and inter-agency collaboration, targeting inter-state fraud networks.
“Two persons involved in a fake ITC racket of about Rs 177 crore have been arrested under the provisions of the CGST Act, 2017,” said an official press release from DGGI late on Wednesday.
The accused were identified as Siddagone Prabhaker and Ramavath Nagaraju Naik, who were allegedly operating 66 shell proprietorship firms as part of an organised GST evasion network.
The enforcement action aims to dismantle large-scale inter-state organised fraud structures and maintain sustained pressure on tax evasion syndicates, the release noted.
Another alleged mastermind, Aadi Reddy alias Anji Reddy, is currently absconding, the release added. (Agencies)