HYDERABAD: The Crime Investigation Department (CID) will take over the investigation into the alleged Rs 1,400 crore GST fraud case involving former Chief Secretary Somesh Kumar and four others, including an IIT-H assistant professor and commercial tax department officials. Official orders for this transfer are expected to be issued soon, according to sources.
Reports suggest that the accused commercial tax officials may have concealed information about Rs 10,000 crore from various companies. The motive behind this is unclear, but officials suspect that the state exchequer could have suffered a loss of up to Rs 10,000 crore. The CID's investigation is anticipated to provide more clarity.
The case is being transferred to the CID due to its complexity involving alleged tax evasion across multiple states. It is reported that about 75 taxpayers, including major companies like the Telangana State Beverages Corporation Limited, are potentially implicated in this scam.
The transfer comes shortly after Somesh Kumar, who also served as an advisor to former Chief Minister K Chandrasekhar Rao, was named as the fifth accused in a complaint filed by the commercial taxes department.
On July 26, Joint Commissioner (CT) of the Central Computer Wing, K Ravi Kanuri, lodged a complaint at the Hyderabad Central Crime Station. The complaint alleges that Somesh Kumar, along with two senior commercial tax officials—SV Kasi Visweswara Rao and A Siva Rama Prasad—along with IIT-H assistant professor Sobhan Babu and the private company Plianto Technologies, were involved in an input tax credit fraud.
Allegations:
- WhatsApp Group Involvement: The complaint mentions a WhatsApp group named “Special Initiatives,” which was reportedly managed under Somesh Kumar's supervision. It is alleged that this group played a significant role in the fraud by generating reports on IGST loss and issuing instructions not to cancel registrations even in fraud cases.
- Initial Fraud Detection: The scam was initially discovered when the commercial taxes department detected a Rs 25.51 crore GST fraud by Big Leap Technologies and Solutions Private Limited, which allegedly claimed input tax credit without paying the corresponding tax to the government.
- Discrepancies and Forensic Audit: Upon investigation, discrepancies were found involving IIT Hyderabad, which had been engaged for software development for the commercial taxes department. It was reported that Plianto Technologies, a private company, was supposedly involved but denied developing any software for the department. Forensic audits indicated unauthorized transfer of proprietary data to a third party.
- Witness Testimony: Sobhan Babu, when questioned, reportedly stated that changes to applications were made based on oral instructions from senior officials, including the then Special Chief Secretary, Revenue (CT), and Additional Commissioner (ST).
The police have registered a case under Sections 406, 409, and 120B of the IPC, as well as Section 65 of the IT Act, for criminal breach of trust, criminal conspiracy, and tampering with computer source documents. The CID's investigation will aim to uncover further details and clarify the extent of the alleged fraud.