Major Interstate Granite Tax Evasion Network Exposed in Hyderabad
Investigators in Hyderabad have uncovered a sophisticated interstate tax evasion racket operating within the lucrative granite trade. The elaborate scheme involved bogus companies allegedly utilizing stolen identity documents to move high-value stone consignments across state lines without paying mandatory taxes and duties.
Network Spanning Multiple States
The illegal network, which has been traced to traders operating primarily in Khammam and Karimnagar districts of Telangana, is believed to have functioned across three states—Telangana, Rajasthan, and Madhya Pradesh—for nearly a full year. Authorities estimate the financial losses from this operation at approximately Rs 100 crore, with officials cautioning that the final figure could be substantially higher as the investigation progresses.
The commercial taxes department in Telangana has formally alerted its counterparts in the affected states, highlighting the crucial role played by interstate middlemen who allegedly coordinated the entire illegal operation. These intermediaries facilitated the movement of goods while evading regulatory scrutiny.
Modus Operandi: Exploiting Identity Documents
The shell companies at the heart of this racket allegedly exploited unsuspecting individuals' Aadhaar and PAN card details to create fraudulent business entities. According to official sources, poor or unaware individuals were paid nominal amounts—as little as Rs 5,000—to provide copies of their crucial identity documents.
Once these documents were obtained, fake firms were registered under these individuals' names and subsequently used to dispatch granite shipments without proper invoices or with completely fabricated e-Way bills. When tax authorities attempted recovery actions, many of these companies were discovered to be non-existent entities with bogus or completely untraceable addresses.
High-Demand Granite Fuels Illegal Trade
The black granite extracted from Khammam region enjoys tremendous demand in northern markets, particularly for kitchen platforms and staircases. This high market value created significant opportunities for illegal trade channels to flourish. Several out-of-state agents operating locally are believed to have assisted businesses in bypassing mandatory e-Way bill requirements that track interstate goods movement.
"We are gathering more details. Once we complete the investigation, we will determine whether taxes should be levied at 200 percent more than what is normally owed or if legal cases will be filed," stated officials involved in the case. "As a precaution, citizens should be extremely careful about sharing their Aadhaar numbers with anyone."
Complicated Tracking and Legal Consequences
Sources revealed that transport vehicles from other states were deliberately utilized to further complicate tracking efforts, allowing operators to evade the additional 18 percent tax that applies specifically to interstate movement of goods. Suspicious travel patterns of certain vehicles eventually helped expose the entire network.
So far, investigators have identified five to six companies directly involved in the racket. Meanwhile, innocent document holders whose identities were misused may now face legal scrutiny and will need to prove they were completely unaware of how their documents were being utilized.
The investigation continues as authorities work to unravel the full extent of this interstate tax evasion operation and identify all parties involved in facilitating the illegal granite trade across state boundaries.
