Rs 100 crore tax fraud unearthed in Telangana

Hyderabad, July 30 (IANS) The Telangana State Commercial Taxes Department has unearthed alleged tax fraud of over Rs 100 crore by Keshaan Industries LLP, a Hyderabad-based private firm.

The company is alleged to have generated high-value tax invoices for the supply of copper materials without any corresponding movement of goods.

Acting on credible intelligence, officials conducted coordinated inspections at the company’s corporate office located on SP Road, Hyderabad; a godown at Bansilalpet, Secunderabad; and its factory units in Kalakal Automotive Park and Muppireddypally villages in Medak district.

As per preliminary findings, empty vehicles were dispatched from Telangana to Maharashtra, while documentation falsely indicated the transportation of substantial consignments. The total value of these fraudulent invoices is suspected to exceed Rs 100 crore.

According to the department, fraud came to light through analysis of vehicle movement data, including toll gate records obtained from the National Highway Authority of India (NHAI). These records indicated that numerous vehicles passed through key toll points without carrying any goods, contradicting the e-way bills. Field intelligence further confirmed that invoices worth over Rs 100 crore may have been issued without actual supplies.

This sophisticated form of tax evasion, raising invoices without the actual supply of goods, is the first of its kind to be detected in Telangana. It represents a dangerous new trend in GST-related fraud. The company fraudulently availed of Input Tax Credit (ITC) of approximately Rs 33.20 crore through such bogus transactions, thereby reducing its output tax liability.

As part of the enforcement measures, officials seized crucial documents, including books of accounts, registers, hard disks, and CCTV footage during the inspections. A formal complaint has been lodged with the Deputy Commissioner of Police (DCP), Central Crime Station (CCS), Hyderabad, with a request to register a criminal case against the company’s directors, Vikash Kumar Keeshan and Rajneesh Keeshan.

Investigations are underway to determine whether similar methods are being adopted by other business entities.

--IANS

ms/uk