In a significant breakthrough with far-reaching implications, the Directorate General of GST Intelligence (DGGI), Ahmedabad Zonal Unit, has detected a massive tax evasion of nearly Rs. 140 crore by a leading online money gaming services company.
The investigation, spearheaded by Rajesh Kumar and his dedicated team of officers, has revealed a complex web of clandestine financial transactions, highlighting how digital platforms are increasingly being misused to evade taxes and route funds abroad.
The case, initially developed from intelligence inputs received by DGGI headquarters, was taken forward by the Gandhidham Regional Unit under the supervision of Kumar’s team. Using advanced data analysis and open-source intelligence tools, investigators tracked suspicious payment gateway transactions linked to the gaming firm.
Subsequent search operations were carried out between August 25–26 across six locations in Delhi, including the company’s principal place of business and the residences of its key executives. Officials disclosed that incriminating evidence, including digital records, internal correspondence, and financial statements, confirmed the company’s deliberate non-disclosure of online money gaming supplies in its GST filings.
So far, the company has made a voluntary pre-deposit of ₹10.6 crore against its mounting dues, officials said.
In a decisive move, investigators have attached 36 bank accounts belonging to the company and its associated entities, which were allegedly used for routing funds. A follow-up raid at the premises of a well-known travel and hotel ticketing company indicated that it acted as an ultimate beneficiary, facilitating the diversion and siphoning of funds abroad.
Preliminary findings suggest the involvement of Chinese nationals operating from Singapore and China, allegedly in collusion with certain Indian nationals. This points to the growing international dimensions of financial fraud through online gaming platforms.
Officials confirmed that no arrests have been made so far, but investigations are in progress and could lead to wider crackdowns in the gaming and fintech ecosystem.
Speaking on the development, sources acknowledged that the detection led by Rajesh Kumar and his team has “wide ramifications,” as it not only exposes one of the biggest GST evasions in the online gaming sector but also underlines the urgent need for tighter monitoring of cross-border financial flows in the digital economy.
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