Tag: Andhra Pradesh

Income Tax Raids on Private Universities in Karnataka and Andhra Pradesh

Income-Tax Officials Conduct Raids on Private University in Bengaluru

Bengaluru: Income-tax officials carried out extensive raids on Wednesday targeting premises associated with a private university in Bengaluru and locations outside Karnataka.

This operation was prompted by allegations of tax evasion and a significant increase in assets that appeared disproportionate to the university’s declared income.

The raids commenced at 6 am and were executed simultaneously across multiple campuses in southern Bengaluru and in Andhra Pradesh, according to sources. Officials are investigating claims that the university group’s assets greatly exceed its reported income, and are currently reviewing financial records. The inquiry includes examining expenditures attributed to college development, furniture purchases, and the collection of student fees.

Additionally, the investigation is focusing on student admissions, with officials verifying information regarding the number of students admitted through both management and government quotas. Furthermore, the count of college employees is also under scrutiny as part of the broader inquiry into the institution’s financial practices, the sources added.

Rs 293 Crore GST Fraud Discovered in Andhra Pradesh

DGGI Arrests Four in Rs 293 Crore Fraud Involving Fake Entities

Visakhapatnam: Officers of the Directorate General of GST Intelligence (DGGI), Visakhapatnam Zonal Unit, have arrested a resident of Proddatur in YSR Kadapa district along with three others for allegedly floating 19 fake entities, resulting in a massive fraud of Rs 293 crore. The operation extended across multiple states including Kadapa, Kurnool, Bengaluru, and Hyderabad.

The primary accused, Manohar (34), and his accomplices created bogus entries at various levels across different states to mask the fraudulent transactions, according to investigating officials. They operated a complex network that generated fake invoices amounting to Rs 293 crore in taxable value.

The fraudulent activities involved the passing of fake Input Tax Credit (ITC) to various functional companies and firms, amounting to Rs 30 crore in GST, which allowed them to illegally avail and utilize credits, thereby evading genuine tax payments and inflicting a significant loss on the government exchequer. The arrest of the mastermind behind this bill trading scheme was authorized by the principal additional director of DGGI, VZU MRR Reddy. Manohar has since been presented before the Special Judge Economic Offences Court in Visakhapatnam on December 13, where he was remanded to judicial custody for 14 days.

An official statement highlighted that the DGGI remains vigilant and is consistently combating various strategies used for tax evasion, particularly through the establishment of fake companies and the resultant losses to public revenue.

“Fraudsters employ a multitude of techniques to evade the scrutiny of this agency, such as creating several layers of fake entities across different states. They exploit the credentials of unsuspecting and impoverished individuals by offering incentives for sharing sensitive personal information,” the statement noted.

In the financial year 2024-25, the Visakhapatnam Zonal Unit of DGGI has collected intelligence and initiated around 79 cases involving a taxable value of approximately Rs 465 crore and fake ITC/GST amounting to Rs 84 crore.