Sleuths from GST’s intelligence wing investigating fake invoice fraud have found that companies in Telangana generating fake invoices to get tax benefits generated most invoices during the assembly and Lok Sabha elections between November 2018 and May 2019. Besides tax benefits, the companies have also been accused of indulging in circular trading without actually supplying goods and services. In the past fortnight, directors of three infrastructure companies, two subcontractors for irrigation projects and others in road construction have been arrested by Director General of GST Intelligence (DGGI) sleuths. Among them are Akella Sai Kumar, director of Aaria Projects Private Limited; D Naresh Choudary managing director of DNC infra; and D Sriharicharan of Suave Corporation India Limited. They are lodged in Chanchalguda jail in Hyderabad. Together, they are believed to have defrauded GST of around Rs 50 crore. Officials have pegged the DNC fraud at Rs 28 crore.
Initial investigation into the other two companies has put the collective liability at Rs 21 crore. Aaria Projects Private Limited was incorporated in 2011 and is located at Ameerpet in Hyderabad. Sai Akella, who was arrested on August 23, is also director in two other companies. Aaria is currently executing civil works in Andhra Pradesh and working at the Nimbagallu site in Anantapur. It was also given 15 acres of land at the Sakhamuru Central Park in Amaravati for the development of a children’s adventure park in public-private partnership mode. Choudary was arrested on September 4. DNC infra is into the construction of the Afcon-Kaleswaram project at Annaram in Jayasankar Bhupalapally district. Sriharicharan of Suave Corporation (India) Private Limited was arrested on August 30. The modus operandi of the accused was availing input tax credit with fake invoices. Ultimately the money is encashed with a series of briefcase companies.