DGGI Big Action: GST Fraud of Rs 273 Crore Exposed in Hyderabad, 2 People Arrested:

DGGI Big Action: GST Fraud of Rs 273 Crore Exposed in Hyderabad, 2 People Arrested 

As part of a major anti-tax evasion crackdown, the Directorate General of GST Intelligence (DGGI), Hyderabad, unearthed a major GST scam on April 10, 2026. The DGGI has apprehended two key individuals in connection with the case, accused of causing a giant loss to the government's revenue by running a bogus input tax credit (ITC) network. First case: Rs 260 crore fake ITC scam

In the first case, the accused Mohammad Azmat Ali has been described as the mastermind of this entire network. He is accused of creating a giant network of about 48 non-running and dummy firms. Fake bills were created through these shell companies, and a fake Input Tax Credit (ITC) of about Rs 260 crore was generated. Investigation revealed that this entire network was spread across different states so that the real transactions could be hidden and caught.

Second case: Rs 13.10 crore GST fraud case In the second case, Faisal Malik, who is the managing partner of FK Metals Traders, has been arrested. He is accused of showing fake GST transactions in the name of the metal business and obtaining the wrong input tax credit of about Rs 13.10 crore. In this case, tax evasion was done through fake companies and paper transactions. In both cases, the accused have been arrested under the CGST Act, 2017. This law has been made to prevent fraud and tax evasion related to GST. DGGI officials say that this entire matter is part of an organised network, in which an attempt was made to hide the real irregularities by creating many fake companies and transactions at multiple levels. Officials said that this action is not limited to any one case but is part of a larger campaign going on across the country. So far in the financial year 2025-26, DGGI has investigated 123 cases, in which GST evasion of approximately Rs 7,252 crore has been revealed, and 10 people have been arrested. The department has made it clear that such action will continue in the future so that the organised tax evasion network can be prevented.