Company MD arrested for fraud

Hyderabad: Rajkumar Rekhya Roopsing Nayak, Managing director of Messrs Sri Kavya Mining Infrastructures Private Limited, was arrested by the commercial taxes department for reporting turnovers and taxes in GSTR-01 and not reporting turnover and taxes to an extent of Rs 18.55 crore in GSTR 3B returns.

On verification of GST returns, it was revealed that Messrs Sri Kavya Mining Infrastructures Private Limited issued GST invoices without paying taxes to the Government to the beneficiary companies, who availed the Input Tax Credit (ITC) based on the strength of such GST invoices issued by Messrs Sri Kavya Mining Infrastructures Private Limited.

The company was routing the transactions without actual payment and issuing GST invoices in passing on the ITC Credit, who have actually availed the input tax credit based on such GST invoices and the beneficiary companies utilized the same for payment of tax through credit account resulting in loss of revenue to the exchequer.

Messrs Sri Kavya Mining Infrastructures Private Limited had availed wrong ITC which is not available in GSTR-2A to the tune of Rs 4.12 crore. The two issues led to wrongful availment of irregular credit which is in violation of the provisions of the TGST Act, 2017 or the rules made there under leading to wrongful availment of Input tax credit (ITC) by them. The modus operandi was adopted by Rajkumar Rekhya Roopsing Nayak of Sri Kavya Mining Infrastructures Private Limited indulged in claiming of wrong ITC and issuance of fake/bogus GST invoices and passing on input supply of goods/services, facilitated the above firms to avail and utilize wrong ITC on the strength of fake / bogus invoices issued by them.

In view of the above, Rajkumar Rekhya Roopsing Nayak was arrested as he committed an offence punishable under the provisions of the GST Act and remanded to judicial custody by the Court for Economic Offences. The arrest was made by Assistant Commissioner (ST), Saroornagar-I Circle under supervision of Joint Commissioner (ST), Saroornagar Division. Further investigation is under process to further identify the actual masterminds behind the scam.