DGGI Hyderabad Expands Investigation into GST Irregularities in Online Betting Case
The Directorate General of GST Intelligence (DGGI), Hyderabad zonal unit, has significantly escalated its investigation into alleged GST irregularities associated with a multi-crore online betting case. This development follows a series of coordinated searches conducted at three technology and fintech companies located in Chennai, Mumbai, and Bengaluru.
Multi-City Operations and Seizures
The multi-city operation, which concluded recently, resulted in the seizure of critical documents, digital evidence, and enforcement actions under the provisions of the CGST Act. Sources indicate that DGGI officers executed these searches as part of a broader effort to uncover potential tax evasion linked to online betting activities.
During the raids, officers targeted IppoPay Technologies Private Ltd in Chennai, where they recovered incriminating documents and electronic records stored on hard drives and laptops. Staff members at IppoPay provided voluntary statements and submitted data from cloud storage, mobile phones, and laptops. However, senior management, including the director and chief technology officer, were unavailable, with their phones switched off or unreachable.
Challenges and Enforcement Actions
In Bengaluru, DGGI officers faced challenges at RUGR Fintech Pvt Ltd, where attempts to search the office on March 30 and April 1 were unsuccessful due to non-cooperation. The office was found shut with a work-from-home notice, and directors did not respond to calls or messages. Consequently, officers pasted summons at the premises under section 70 of the CGST Act, directing director KV Arangasamy to appear for inquiry on April 8.
At DecFin Tech Pvt Ltd in Bengaluru, officers visited on April 2 but found the office locked. The building manager informed them that the office had remained shut for two days due to networking issues. Citing concerns of possible evidence tampering and non-cooperation, officers sealed the premises under section 67(4) of the CGST Act.
Background of the Investigation
This intensified probe is part of DGGI Hyderabad's ongoing investigation into the online betting-linked GST case, which has already seen the arrest of Fino Payments Bank CEO Rishi Gupta. The Telangana High Court has dismissed his plea seeking to quash the case and grant bail, underscoring the seriousness of the allegations.
The actions highlight DGGI's commitment to tackling GST fraud in the digital economy, particularly in sectors like fintech and online betting, where regulatory oversight is crucial. The seizure of digital evidence and documents is expected to provide further insights into the scale and mechanisms of the alleged irregularities.
