Prathipati Sharath, son of former TDP Minister Prathipati Pulla Rao, who was arrested for claiming false Input Tax Credit (ITC) and tax evasion, created about 12 shell companies which were closed later, said officials of the Directorate General of GST Intelligence (DGGI).
During their investigation, officials found that the accused had allegedly created fake invoices for about ₹49.46 crore, through 12 shell companies and claimed ₹8 crore in ITC.
The DGGI, which noticed the scam, had imposed ₹16 crore fine and served demand notices. The shell companies were closed in 2021, the police said in a release. Sharath was arrested by the NTR Commissionerate Police on February 29, and was sent to judicial remand.
Sharath, additional director of Avexa Corporation Private Limited, and his associates had allegedly floated fake companies with fictitious names and addresses of other States, said the NTR Police Commissionerate, who are investigating the case.
Avexa Corporation directors took work orders from M/s. BSR Infratech India Private Limited, which took contracts from APCRDA for laying a road between Uddandarayunipalem to Nidamarru. Avexa’s management has allegedly created fake invoices for ₹26 crore without executing the works, said Police Commissioner Kanthi Rana Tata, who is monitoring the investigation into the scam.
Avexa Corporation Private Limited claimed that they had procured material worth ₹17.70 crore from shell companies, Noida Ispat India Limited, Khwahish Marketing Private Limited, Prasanth India Corporation and Goldphoenix Iron and Steels Private Limited and claimed input tax of about ₹2.70 crore from the government.
Avexa has allegedly submitted bills stating that the firm had procured material worth ₹21.93 crore from Tanisha Infra Private Limited, Rollon Projects, Annal Infra Developers Limited and Always Town Planners Private Limited, and had claimed ITC for ₹2.62 crore. But during investigation, it was revealed that Avexa had not made any purchases from the four shell companies, Mr. Kanthi Rana said.
“The accused had floated fake companies, created false invoices and resorted to economic offence. It was noticed that Sharat and his other family members made transactions worth more than ₹10 crore through various bank accounts,” the Police Commissioner said on Saturday.
