Telangana GST Fraud Exposed
Telangana GST Fraud: Former Chief Secretary Somesh Kumar Under Investigation
Hyderabad: The Hyderabad Central Crime Station (CCS) has launched an investigation into former Telangana chief secretary Somesh Kumar and two senior officers from the Commercial Taxes department over alleged Goods and Services Tax (GST) violations. The allegations pertain to Kumar’s tenure during the previous Bharat Rashtra Samithi (BRS) government led by ex-chief minister K Chandrashekar Rao (KCR). A complaint lodged by K Ravi Kanuri, Joint Commissioner (CT) of the Central Computer Wing, Nampally, Hyderabad, on July 26 initiated the case. The FIR also includes Plianto Technologies Private Limited and IIT-Hyderabad assistant professor Sobhan Kumar.
During a verification process, officials from the Commercial Tax Department discovered 11 cases allegedly concealed by IIT-Hyderabad. These cases revealed over Rs 1,000 crore in tax evasion through fraudulent activities in Telangana. The accusations against Somesh Kumar and others include manipulating taxpayer data and issuing directives to avoid cancelling fraudulent cases.
According to Ravi Kunuri’s complaint, “GST fraud was evident in the case of Big Leap Technologies and Solutions Private Limited.” This entity, involved in manpower supplies, reportedly passed on input tax credits worth Rs 25.5 crore without paying any actual tax, resulting in significant losses to the state exchequer.
IIT-Hyderabad was engaged as a service provider by the Commercial Taxes department to develop software for analytics and discrepancy reports based on tax returns filed by Telangana taxpayers. However, discrepancies emerged during the desk audit of Big Leap Technologies and Solutions Private Limited. These discrepancies were not reflected in the reports generated through the ‘scrutiny module’ developed by IIT-Hyderabad.
An officer from the Commercial Taxes department was authorized to visit IIT-Hyderabad to investigate. The visit revealed several issues, including undocumented software changes and alterations made based on verbal instructions from Somesh Kumar, then special chief secretary, revenue (CT); additional commissioner (ST), (IT & EIU), SV Kasi Visweswara Rao; and deputy commissioner (ST), STU-1, Hyderabad Rural, Siva Rama Prasad.
The officer noted that the scrutiny reports failed to capture IGST discrepancies, causing revenue loss. When questioned, SV Kasi Visweswara Rao, Siva Rama Prasad, and Plianto Technologies Private Limited provided explanations. Statements from some indicated that their actions were based on instructions from Somesh Kumar. They had provided a format to IIT-Hyderabad for capturing discrepancies in IGST, CGST, SGST, and Cess, but IGST and Cess notices were not generated.
Plianto Technologies Private Limited denied developing any software for the Commercial Taxes department. A comprehensive audit by the state audit department and C-DAC of the applications and databases hosted at IIT-Hyderabad revealed further details. Project investigator Professor Sobhan Babu reportedly received instructions through a WhatsApp group called ‘Special Initiatives,’ which included Somesh Kumar, SV Kasi Visweswara Rao, A Siva Rama Prasad, and the academic.
Software changes were directed through this WhatsApp group. The chat history revealed reports estimating IGST losses and instructions not to cancel registrations, even in fraudulent cases. Based on these findings, the police have invoked Sections 406, 409, and 120B of the IPC and relevant sections of the IT Act.
The investigation continues as authorities work to uncover the full extent of the fraud and hold those responsible accountable for their actions.
Chandipura Virus Enters Rajasthan