Gang involved in evading VAT busted

​Hyderabad: Sleuths of the Central Crime Station (CCS) on Saturday claimed to have arrested an alleged kingpin of an organised crime syndicate that evaded Value Added Tax (VAT) to the tune of Rs 5.56 crore.

The arrested are V V Subba Reddy aka Stengun Reddy, a native of Kadapa district living in Hyderabad. Police said the prime accused ganged up with others and furnished fake identity proofs while registering with the Commercial Taxes Department as trader and secured TIN numbers.

Later, the gang sold out the way bills to various businessmen, who had not registered with the Commercial Tax Department, to transact business in edible oils, pulses and other grains.

The unregistered traders managed to transport the goods with the help of way bills purchased from the gang. The gang, the police said, had made huge money by evading VAT to the tune of Rs 5.58 crore.

The Commercial Taxes Department detected the fraud and lodged a complaint with the police. Consequently, CCS sleuths had on March 23 arrested four accused while the kingpin gave a slip to the police.

However, police could arrest him on Saturday and efforts are under way to nab few more accused, police said.