Several Pleas floated by Sujana Shell companies not maintainable

HYDERABAD: Several firms charged by CGST officials as being shell firms of Sujana Group of Companies are now approaching the Telangana high Court Challenging the penal notices issued to them by CGST officials and also seeking for protection from the imminent arrest of directors.

The Union Government on Monday told the Telangana high Court that the petitions filed by several shell companies allegedly floated by Sujana industrial group are not maintainable and sought their summary dismissal at the threshold stage itself. Additional Solicitor General KM Nataraj told this to a bench of Justice V Ramasubramanian and justice P Kesava Rao that was hearing six such pleas filed by the alleged shell companies.

The anti-evasion wing of the CGST wing is pursuing the 'fraud' perpetrated by these alleged Sujana shell companies. According to CGST officials, Sujana group of industries floated these shell companies for the sole purpose of generating fake invoices and real loans Officials said that Sujana group used these firms for fictitious business transactions and raised challans of Rs 1,284 crores as CGST payment.

The same fictitious CGST payments were then shown as collateral by the shell companies to raise more than Rs 2,000 crore bank loans, CGST sources said. The directors of the companies approached the HC, challenging the action of CGST officials. Senior counsel Raghunandan Rao told HC that CGST officials are making the directors wait for hours at CGST office.

The bench posted the case for hearing to Tuesday.