Hyderabad: The Directorate General of GST Intelligence, Hyderabad, on Friday arrested two persons for allegedly running fake input tax credit (ITC) networks through dummy firms, in cases involving fraud of ₹260 crore and ₹13 crore.The arrests, made on April 10, are part of a wider crackdown on organised GST evasion, identified through data analytics and inter-agency coordination. Officials said both accused were key operators in inter-state tax fraud networks. In the first case, Mohammed Azmath Ali was identified as the alleged mastermind behind a network of 48 dummy and non-operational firms. These entities were used to generate and pass on fraudulent ITC worth ₹260 crore, according to DGGI. In the second case, Faisal Malik, managing partner of FK Metals Traders, was accused of orchestrating fraudulent ITC of ₹13.10 crore linked to a metal trading operation. Officials said both cases reflect a pattern of organised tax evasion involving multiple entities and layered transactions designed to conceal the fraud. The two accused were arrested under provisions of the CGST Act, 2017. DGGI said it has intensified enforcement against organised GST fraud and is focusing on dismantling networks by targeting key operators. The action, officials added, was taken considering the seriousness of the offences and to act as a deterrent. In 2025-26, the agency booked 123 cases involving organised GST evasion worth ₹7,252 crore and arrested 10 persons. Officials said the latest arrests form part of this broader enforcement drive, with further investigation underway.
