Madanapalle: 4 held in Rs 13.21 crore I-T refund scam

Madanapalle: Madanapalle police on Tuesday arrested four persons involved in Rs 13.21 crore Income Tax (I-T) refund scam and they are on the lookout for two more wanted in this scam.

According to Madanapalle police, the four arrested include K Srinivasulu, sub-treasury officer (STO) at Madanapalle, who earlier worked in Thamballapalle and A1 accused; Bala Murali, sub-treasury officer, Tamballapalle and A2 accused; Iftiaz Ali, earlier worked as STO and now working in the district treasury office, Annamayya district; and GV Jeevanandam, senior accountant, STO in Punganur.

The other two accused, who were absconding, are YR Srinath (A4) and his wife YS Ramya, who are business partners of M/s YSR & Co, Tax Consultancy located on Subhash road, Madanapalle town.

According to the police, the accused A1 to A6 conspired to get (bogus) income tax refunds based on fake documents. As per their plan, the accused STOs A1, A2 and A3 and senior accountant in treasury department A6 claimed bogus income tax refunds, fraudulently to the tune of Rs 37,62,03,648 during the financial years from 2015-16 and 2021-2022, from income tax department by getting their bills e-filed with false and fabricated data through the tax consultancy. Against the claim, Rs 13,21,76,257 was refunded.

Based on the complaint from the IT Officer Srinivasulu, Tirupati, police registered a case and arrested the four, who were found involved in the fake refund scam.