The Directorate General of Goods and Services Tax Intelligence (DGGI), Ghaziabad Regional Unit, has secured judicial custody of accused Kumar Manish, alleged mastermind in online gaming scam till April 27, 2026, in connection with a massive ₹4,600 crore GST evasion case.
The accused was produced before the Court of the Learned Special Chief Judicial Magistrate, Meerut, following his arrest under Section 69 of the Central Goods and Services Tax (CGST) Act, 2017. Acting on the application filed by the prosecution, the Court remanded him to judicial custody for further investigation.
According to the prosecution, the case involves a well-orchestrated scheme of tax evasion through online money gaming platforms, where shell entities were allegedly created to disguise real transactions.
Investigators revealed that around 47 entities received funds exceeding ₹16,44,96,47,476 through the SabPaisa payment gateway. These entities allegedly paid GST at 18% on arbitrarily declared commission values instead of the applicable 28% GST on the full face value of bets (player deposits). This resulted in a GST liability of approximately ₹4,60,59,01,293, out of which only about ₹2.77 crore was paid.
The department claims this indicates systematic suppression of taxable turnover and deliberate evasion of GST.
During the investigation, DGGI officials found that several registered entities were non-existent or operating from fake addresses. These firms functioned as shell/dummy companies solely for routing funds and masking transactions. Physical verification confirmed that many were not engaged in any genuine business activity.
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Statements recorded from officials of private firms, including SRS Live Technologies Pvt. Ltd., indicated suspicious transaction patterns such as high-volume, low-value transactions (₹100 denomination). Unusual timing and behavior typical of online betting/gaming activity. Despite these red flags, such entities were allowed to continue operations on the SabPaisa platform.
Further, testimony from a director of Tasdeek Solutions Pvt. Ltd. suggested manipulation of verification reports, where high-risk entities were downgraded to avoid scrutiny.
The prosecution has alleged that Kumar Manish exercised complete control over merchant onboarding, compliance, and fund settlement. Was aware of suspicious patterns and internal risk flags. Approved deviations from KYC norms and standard operating procedures. Facilitated continued operations of such entities despite knowledge of irregularities.
Investigators also claim that he enabled settlement of funds through non-escrow accounts, violating regulatory norms and allowing layering and diversion of funds.
The probe further uncovered that funds were routed through entities allegedly linked to the accused, including: M/s Forty Two Parks Technologies LLP and M/s Bobis Entertainment Pvt. Ltd.
These funds were eventually traced to his personal bank accounts, indicating that he was not merely a facilitator but also a direct beneficiary of the alleged fraud.
The accused has been charged under multiple provisions of the CGST Act, including: Section 132(1)(a) – Suppression of taxable supply; Section 132(1)(f) – Falsification of financial records; Section 132(1)(i) – Obstruction of officers; and Section 132(1)(l) – Attempt to commit offences.
Given that the alleged evasion exceeds ₹5 crore, the offences are categorized as cognizable and non-bailable under Section 132(5) of the Act.
The DGGI argued for judicial custody citing risk of tampering with digital and documentary evidence, possibility of influencing witnesses and co-accused, likelihood of manipulating financial records, and need for uncovering the full network of beneficiaries and fund trails
The court accepted these submissions and remanded the accused to custody.
Officials emphasized that the investigation is still ongoing and involves tracing the entire network of shell entities, identifying ultimate beneficiaries and analyzing digital evidence and transaction trails
Authorities believe the case represents a large-scale, structured economic offence, with far-reaching implications for the online gaming and fintech ecosystem.
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