HYDERABAD: The Directorate General of GST Intelligence (DGGI), Hyderabad, has intensified its crackdown on organised Goods and Services Tax ( GST) evasion, arresting two alleged masterminds involved in large-scale fraudulent Input Tax Credit (ITC) claims.
Officials said the action followed specific intelligence developed through advanced data analytics and coordination with multiple agencies. The arrests were made on April 10, 2026.
Mohammed Azmath Ali was identified as a key member of a network that allegedly created 48 dummy or non-operational firms. These entities were used to generate and pass on fraudulent ITC worth about ₹260 crore.
In a separate case, Faisal Malik (raw: Shri Faisal Malik | corrected: Faisal Malik), managing partner of M/s F K Metals Traders, was found to be the alleged mastermind behind fraudulent ITC of ₹13.10 crore.
123 cases booked in 2025-26 involving ₹7,252 crore fraud
Both individuals were arrested under provisions of the Central Goods and Services Tax (CGST) Act, 2017. Officials said further investigation is under way to trace the wider network and financial trail.
The DGGI said that during 2025-26, it booked 123 cases involving organised GST fraud networks amounting to ₹7,252 crore. A total of 10 persons have been arrested so far in connection with these cases.
Authorities said the intensified enforcement aims to deter organised tax evasion and dismantle networks involved in fake invoicing and ITC fraud.