Hyderabad:A massive Goods and Services Tax (GST) scam worth over Rs 3,000 crore has come to light in Telangana, exposing serious irregularities in input tax credit (ITC) claims by top companies. An audit of 45 out of 75 large companies revealed fraudulent transactions exceeding Rs 2,648 crore, with estimates suggesting the total scam could surpass ₹3,000 crore as more firms are investigated.
Authorities suspect the involvement of top bureaucrats and officials from the previous government. Former Chief Secretary Somesh Kumar and Additional Commissioner Kashi Vishweshwar have emerged as key figures, with a high-level committee expected to submit a comprehensive report by June. The panel is also working towards criminal proceedings and full recovery of funds from the accused firms.
Key findings:
Of the Rs 3,000 crore scam, a fresh ₹500 crore fraud is suspected in companies yet to be audited.
Prominent firms including GMR, Jio Fiber Ltd, Olectra Greentech Ltd, L&T, and ITC are named in the forensic audit.
Delays by the CID in handing over evidence for forensic scrutiny have raised concerns.
The audit revealed large-scale misuse of the ITC mechanism, with bogus billing, circular trading, and manipulation of e-way bills. Companies reportedly issued fake invoices to inflate turnover and falsely claim tax credits.
Seven companies, including VCR 8 Media, Amaravati Global Solutions, and Bluenine Technologies Pvt Ltd, share a common registered phone number — a major red flag. Directors Kotayya Alokam, Prabhakar Rao Alokam, and Anita Alokam are under investigation. Bluenine alone owes Rs 18.85 crore in tax but has paid only ₹20.2 lakh.
In one case, these firms paid just 1.66% of their due GST, while adjusting the rest via fraudulent ITC claims. The scam involved fake trade of items like scooters, motorbikes, autos, buses, and tractors.
Some GST officials reportedly aided these companies by withdrawing show-cause notices and reinstating cancelled registrations, especially in the Begumpet division. Former CS Somesh Kumar’s name also surfaced in chat evidence from a WhatsApp group named “Special Initiatives,” leading to formal FIRs.
The state government is preparing to take strict legal action and ensure full tax recovery while tracing the masterminds behind the scam.