VISAKHAPATNAM: The Directorate General of GST Intelligence (DGGI), Visakhapatnam Zonal Unit, has unearthed a major fake Input Tax Credit (ITC) syndicate involving fraud of Rs 217 crore and invoice transactions worth about Rs 1,472 crore across AP and Telangana.
Two key operatives, Siddagoni Prabhaker and Ramavath Nagaraju Naik, have been arrested. The probe found that the network was allegedly masterminded by Dhantla Aadi Reddy alias Anji Reddy, who is absconding.
According to DGGI, the case came to light following specific intelligence inputs on unusual GST registrations and credit flow patterns. Using data analytics, risk profiling and field verification, officials identified several entities with no real business activity but large-scale invoice generation and ITC claims.
The investigation revealed a syndicate that created shell firms solely to generate and circulate fake ITC. As many as 72 such entities were identified, using Aadhaar and PAN details of unsuspecting individuals shown as proprietors.