DGGI arrests accused in fake ITC scam

Visakhapatnam: Officers of the Directorate General of GST Intelligence (DGGI), Visakhapatnam Zonal Unit, have arrested T Venkata Swaroop Kumar, who has been identified as the operator of a fake Input Tax Credit )ITC) racket run through a network of controlled firms. Investigation has revealed that these firms were projected as providers of works contract service providers, but were in fact dummy concerns used for fraudulent availment and passing on of IITC. Thr arrest is a follow-up to two earlier arrests in the same case, namely Mallikarjuna Manoj Kumar, identified as another mastermind of the network, and DN Srinivasa Reddy, Partner of Sri Progressive Projects, the principal beneficiary firm. Investigation has so far established that the firms controlled by the accused fraudulently availed ITC of Rs9.62 crore and passed on fraudulent ITC of Rs7.49 crore to Sri Progressive Projects. The entities were found to have no real capacity to execute works contract services of the nature and magnitude reflected in the invoices issued by them.