In a major crackdown on tax fraud, the Directorate General of GST Intelligence (DGGI), Visakhapatnam Zonal Unit, has uncovered a large-scale fake Input Tax Credit (ITC) syndicate involving fraudulent claims of approximately ₹217 crore. The racket is spread across the States of Andhra Pradesh and Telangana, with suspicious invoice transactions estimated at nearly ₹1,472 crore.
Two alleged key operatives, Siddagoni Prabhaker and Ramavath Nagaraju Naik, have been arrested in connection with the case. Authorities have identified Dhantla Aadi Reddy, also known as Anji Reddy, as the alleged mastermind behind the operation. He is currently absconding, and efforts are underway to trace and apprehend him.
According to officials, the case came to light following specific intelligence inputs pointing to irregular GST registrations and suspicious patterns in the flow of input tax credit. Acting on these leads, DGGI officers deployed advanced data analytics, risk profiling, and on-ground verification to scrutinize entities suspected of fraudulent activity.
The investigation revealed a well-organized syndicate engaged in creating a network of shell firms with no genuine business operations. These entities were allegedly used solely for generating and circulating fake invoices to fraudulently avail and pass on ITC. Officials identified as many as 72 such bogus firms operating within the network.
In a disturbing modus operandi, the syndicate is said to have misused Aadhaar and PAN details of unsuspecting individuals, falsely listing them as proprietors of these shell entities. This enabled the accused to carry out large-scale invoice manipulation without raising immediate suspicion.
DGGI officials stated that further investigation is ongoing to identify additional beneficiaries, trace financial trails, and dismantle the wider network involved in the fraud. Authorities are also examining the role of other individuals and entities that may have knowingly or unknowingly participated in the circulation of fake ITC.
The crackdown underscores the government’s intensified efforts to curb GST evasion through technology-driven surveillance and enforcement mechanisms, particularly targeting fraudulent ITC claims that significantly impact revenue collection.
