CID to Investigate ₹1,400 Crore GST Fraud Case Involving Former Chief Secretary, IIT-H Professor, and Commercial Tax Officials
The IIT Assistant Professor reportedly admitted that software changes were made based on oral instructions from senior officials
The Crime Investigation Department ( CID ) is set to take over a high-profile case involving an alleged GST fraud of nearly ₹1,400 crore. The case includes prominent figures such as the former Chief, an assistant professor from IIT Hyderabad, and officials from the commercial tax department. Official orders for this transfer are expected to be issued soon, as confirmed by...
The Crime Investigation Department ( CID ) is set to take over a high-profile case involving an alleged GST fraud of nearly ₹1,400 crore. The case includes prominent figures such as the former Chief, an assistant professor from IIT Hyderabad, and officials from the commercial tax department. Official orders for this transfer are expected to be issued soon, as confirmed by sources.
The alleged fraud centres around claims that commercial tax officials concealed information related to ₹10,000 crore from various companies. Although the exact motive remains unclear, it is suspected that the state exchequer may have suffered significant financial losses. The complaint was lodged by the commercial taxes department.
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Preliminary investigations suggest that the fraud might involve numerous states and impact about 75 taxpayers, including major entities like the Telangana State Beverages Corporation Limited, reported Indian Express.
The Former Chief Secretary, who also served as an advisor to former Chief Minister K Chandrasekhar Rao, was named as the fifth accused in the case. The complaint, filed on July 26 by Joint Commissioner (CT) of the Central Computer Wing, alleges involvement in an input tax credit scam.
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According to the complaint, a WhatsApp group called "Special Initiatives," managed under Chief Secretary’s supervision, played a major role in the fraud. The chat history reportedly revealed that the group was involved in generating reports estimating losses from Integrated Goods and Services Tax (IGST) and issued instructions to avoid cancelling registrations even in fraudulent cases.
The scam was uncovered after the commercial taxes department detected a ₹25.51 crore GST fraud committed by Big Leap Technologies and Solutions Private Limited, which allegedly claimed input tax credits without actual tax payments.
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Further investigations into IIT Hyderabad, which was engaged for software development, revealed discrepancies in the discrepancy reports. It was also discovered that the operations, supposedly managed by Plianto Technologies, were inaccurately reported as not being developed for the commercial taxes department.
The IIT Assistant Professor reportedly admitted that software changes were made based on oral instructions from senior officials. A forensic audit indicated that the accused were involved in manipulating data to favour certain taxpayers and create financial losses for the state.
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