Cartel of steel units engaged in GST evasion exposed

One person arrested

The Directorate General of GST Intelligence (DGGI), Thiruvananthapuram Regional Unit, has exposed an alleged cartel of units in steel industry engaged in GST evasion and arrested a person in this connection.

The arrested has been identified as Humayoon Kalliayth, proprietor of the Palakkad-based Humayoon & Associates, who allegedly spearheaded the cartel, according to a release issued by the DGGI on Wednesday.

Mr. Kalliyath is also the executive director of Kairali Steels and Alloy (P) Ltd., Palakkad, which is suspected to be the major beneficiary of the racket.

The cartel allegedly utilised and passed on fake input tax credit to facilitate evasion of GST. The arrested was accused of floating fictitious units in his name and that of his accomplices. The fake input tax credit passed on in this manner by the cartel was used for evasion of GST by the beneficiaries.

Officers of the DGGI units at Thiruvananthapuram, Kochi, and Kozhikode conducted simultaneous operations on various premises across the State and recovered a number of incriminating documents.

“Preliminary investigation reveals that the cartel issued fake invoices valued at ₹400 crore to the ultimate beneficiaries, thereby passing on fake input credit of GST amounting to about ₹43 crore,” the release said.

The arrested was booked under Section 132 of the CGST Act and the charges are non-bailable. He was produced before the Additional Chief Judicial Magistrate, Thiruvananthapuram, and remanded in judicial custody.

Jijo Francis, Intelligence Officer, DGGI Thiruvananthapuram unit, made the arrest. The team also comprised senior intelligence officers Hareendran K., Shahul Hameed A., Balagopal G., and Kurian P. Mathew; intelligence officers Vaishak R., Vaishakhan, Ashok Kumar Datti, and Manju Krishnadas.

The investigation was supervised by Krishnenthu Mintoo Raja, Deputy Director, DGGI, Thiruvananthapuram unit, under the supervision of Nasser Khan, Additional Director.