The Visakhapatnam zonal unit of the Directorate General of GST Intelligence (DGGI) has arrested Eliyaz Basha for his alleged involvement in a fraudulent Input Tax Credit (ITC) racket amounting to Rs. 19.79 crore.
According to officials, the accused orchestrated the fraud by using a firm based in Hindupur to generate fake invoices without any actual supply of goods. These invoices were reportedly used by multiple recipient entities to wrongfully claim ITC, leading to significant tax evasion.
Investigations revealed that Basha operated through a firm named M/s Dawood Hardware & Cements, which is said to be owned by his brother. Authorities allege that the firm functioned as a front to issue bogus invoices, enabling several businesses to avail fraudulent tax credits in violation of the Central Goods and Services Tax Act, 2017.
Following the collection of substantial evidence, DGGI officials arrested the accused for committing cognizable and non-bailable offences. He was subsequently produced before the Court of Economic Offences and remanded to 14 days of judicial custody under the provisions of the Bharatiya Nagarika Suraksha Sanhita, 2023.
A senior DGGI official stated that this is the second arrest made by the Visakhapatnam unit in the financial year 2026–27. The first arrest of the current fiscal involved T. Venkata Swaroop Kumar, announced earlier this month.
The official further added that during the financial year 2025–26, the unit had arrested eight individuals and uncovered GST fraud exceeding ₹352 crore.
Further investigation is currently underway to identify and take action against other entities that may have benefited from the fraudulent ITC network.
