CBI Hyderabad books two top GST officials in Rs 5 crore bribery scandal

HYDERABAD: Central Bureau of Investigation has issued an FIR against two GST officials including deputy commissioner of Services Tax Evasion Chilaka Sudha Rani and superintendent of Service Tax Evasion Bollineni Sreenivas Gandhi in connection with Rs 5 crore bribery scandal.
Bribe giver Satya Sidhar Reddy Jagan Nagari director of Bharani Commodities, Hyderabad Steels an accused in GST tax evasion case was also booked as accused by the CBI in the FIR issued on September 11.
Interestingly the two officials led the investigation in March 2019 where they detected a fake invoice fraud where Rs 1,289 crore was raised and around Rs 224 crore illegal input tax credit involving eight companies linked to Sridhar Reddy and others.The two GST officials accused eight companies then that without physical supply of goods and services mostly steel bars and TMT bars the companies raised invoices and availed input tax credit. While GST case is on CBI registered a preliminary enquiry in 2019 October 31 based on source information that officials of Anti Evasion wing of Hyderabad GST Commissionarate committed misconduct and accepted a bribe. After ascertaining basic facts, CBI has sought approval from the competent authority under the Prevention of Corruption Act to proceed against the accused officials. After permission has been accorded, CBI booked the FIR under criminal conspiracy and Prevention of Corruption Act.
CBI in the FIR alleged that,"Preliminary prima facie revealed that Chilaka Sudha Rani and Sreenivas Gandhi who were connected with the investigation into the case against Infiniti Metal Products India Private Limited and their group companies for wrongful availing of an input tax credit. The duo conspired with other officials of GST department and demanded Rs 5 crore bribe from the group. They accepted Rs 10 lakh cash in advance on April 15 in 2019." The accused officials also demanded balance bribe in the form of open plots and lands.
Third accused J S Sridhar Reddy director of Bharani Commodities and Hindustan Ispat Private Limited was arrested on March 6 2019 by GST officicals and he was released on March 29 from jail.
The probe revealed after release from jail Sridhar Reddy paid Rs 10 lakh on April 15 under the threat of arrest of his wife J Raghavi Reddy partners of Hyderabad Steels.
"Sridhar Reddy failed to report the matter to the CBI or any other law enforcement agency within a period of seven days as required under the law.," said a CBI official.
It can be recalled in July 2019 CBI conducted searches on the properties of Bollineni Gandhi who was then ED investigating official in several high profile cases and found Rs 3.7 crore worth of disproportionate assets.