The Directorate General of GST Intelligence (DGGI), Hyderabad Zonal Unit, has stepped up its investigation into alleged Goods and Services Tax (GST) violations linked to a high-value online betting network. As part of the widening probe, officials carried out coordinated searches across multiple cities, targeting technology and fintech firms suspected of facilitating the transactions.
The multi-city operation, spanning Chennai, Mumbai, and Bengaluru, concluded last week. According to sources, the कार्रवाई led to the seizure of crucial documents and digital evidence, alongside enforcement actions initiated under provisions of the Central Goods and Services Tax (CGST) Act.
Searches Yield Digital and Documentary Evidence
DGGI officials conducted a detailed search at the premises of IppoPay Technologies Private Limited in Chennai. Officers reportedly recovered incriminating documents and significant electronic data stored on hard drives and laptops. Staff members at the office cooperated with investigators, providing voluntary statements and sharing data from cloud storage systems, mobile devices, and internal systems.
However, senior executives, including the company’s director and chief technology officer, were unavailable during the search, with their mobile phones reportedly switched off or unreachable.
Non-Cooperation from Other Firms
At RUGR Fintech Private Limited, DGGI officials faced difficulties in executing search operations at its Bengaluru premises on March 30 and April 1. The office was found closed, displaying a “work from home” notice. In response, officers pasted summons at the location and issued notices under Section 70 of the CGST Act, directing director K.V. Arangasamy to appear for questioning on April 8 after repeated attempts to establish contact failed.
Similarly, the Bengaluru office of DecFin Tech Private Limited was found locked during a visit on April 2. Building management informed authorities that the office had remained shut for two days due to alleged “networking issues.” Citing concerns over possible destruction or tampering of evidence, DGGI officials sealed the premises under Section 67(4) of the CGST Act.
Wider Investigation and Arrest
It forms part of an ongoing crackdown by DGGI Hyderabad into a larger online betting-linked GST evasion case involving substantial financial irregularities. In a significant development earlier, Rishi Gupta, CEO of Fino Payments Bank, was arrested in connection with the मामले.
The Telangana High Court has since dismissed Gupta’s plea seeking quashing of the case and grant of bail, allowing the investigation to proceed further.
Probe Gathers Momentum
With key digital evidence now in its possession and multiple entities under scrutiny, DGGI is expected to deepen its investigation into the financial trails, compliance failures, and alleged misuse of fintech platforms in facilitating online betting transactions. Officials indicated that further summons, forensic analysis of seized data, and possible arrests may follow as the probe unfolds.
Read More: No Liability Without Possession of Goods: CESTAT Quashes Rs. 50K Penalty on Broker
