DGGI Steps Up GST Probe Into Online Betting Case, Searches Fintech Offices in Three Cities

Hyderabad: The Directorate General of GST Intelligence (DGGI), Hyderabad Zonal Unit, has intensified its investigation into alleged GST irregularities linked to a multi-crore online betting case, carrying out searches at fintech and technology companies in Chennai, Mumbai and Bengaluru.

The latest action is part of a wider investigation aimed at tracing financial transactions, examining digital records and understanding how several companies may be connected to the betting-related case.

According to sources familiar with the probe, the multi-city operation concluded last week. During the searches, DGGI officials reportedly recovered documents, electronic records and other material that could help investigators piece together the financial trail and establish the possible role of different entities.

The companies under scrutiny include IppoPay Technologies Private Ltd, RUGR Fintech Pvt Ltd and DecFin Tech Pvt Ltd.

IppoPay search yields documents and digital records

The DGGI’s search at IppoPay Technologies’ Chennai office was conducted last month. Officials reportedly found documents and electronic records that they considered relevant to the investigation.

Investigators examined laptops, hard drives and other electronic devices at the premises. Employees present during the operation reportedly provided statements and voluntarily handed over information stored on cloud platforms, mobile phones and laptops.

The digital information could be important to the investigation as officers attempt to trace transactions and understand the flow of funds allegedly associated with the wider online betting network.

However, some senior members of IppoPay’s management were reportedly not available during the search. Sources said the company’s director and chief technology officer could not be contacted, with their phones switched off or unreachable.

The material collected from the office is now expected to undergo detailed scrutiny as the agency works to determine whether it contains evidence of GST-related violations or links to other entities being investigated.

RUGR Fintech office found shut

The DGGI investigation also took officials to the Bengaluru office of RUGR Fintech Pvt Ltd.

According to sources, officers attempted to conduct searches at the premises on March 30 and April 1, but were unable to proceed because the office was closed. A work-from-home notice was reportedly displayed at the premises.

Sources further alleged that the company’s directors did not respond to repeated calls and messages from DGGI officials.

Since the search could not be carried out, the agency issued summons under Section 70 of the CGST Act to RUGR director KV Arangasamy. He was asked to appear before the investigating officers on April 8 and provide information in connection with the case.

The summons are intended to help investigators obtain statements and records that may shed light on the company’s activities and its possible connection with the transactions under examination.

DecFin premises sealed by investigators

The DGGI also visited the Bengaluru office of DecFin Tech Pvt Ltd on April 2.

When officials arrived, they reportedly found the premises locked. The building manager allegedly told the officers that the office had been closed for two days because of “networking issues.”

The investigators subsequently sealed the premises under Section 67(4) of the CGST Act.

According to sources, the decision was taken amid concerns over alleged non-cooperation and the possibility that relevant records or evidence could be altered, removed or otherwise tampered with.

Sealing the premises allows the authorities to preserve the location while continuing their investigation and examining what material may be relevant to the case.

DGGI follows the digital and financial trail

The latest operation reflects the growing importance of digital evidence in financial and tax investigations.

Rather than relying only on traditional company documents, investigators are examining laptops, mobile phones, hard drives, cloud storage and other electronic records. Such material can potentially help establish transaction patterns, communications and connections between different entities.

The DGGI is expected to analyse the information collected during the searches and compare it with other evidence gathered during the broader investigation.

The agency’s focus is reportedly on determining whether the companies under scrutiny played any role in transactions connected to the alleged online betting operation and whether applicable GST obligations were properly met.

Fino Payments Bank CEO already arrested

The wider investigation has already led to the arrest of Rishi Gupta, CEO of Fino Payments Bank, making the case one of the more closely watched GST-related investigations involving the fintech sector.

Gupta later approached the Telangana High Court, seeking relief including the quashing of the case and bail. The court dismissed his plea.

The latest searches suggest that the DGGI is continuing to follow the financial trail and examine the possible involvement of other businesses and individuals.

Investigation still underway

The investigation is still in progress, and the material recovered during the recent searches will have to be examined before investigators can establish the full nature and extent of the alleged GST irregularities.

The agency’s efforts to obtain digital records, question company officials and preserve potentially relevant premises indicate that investigators are working to build a clearer picture of the financial network surrounding the online betting case.

Further action will depend on the findings emerging from the seized records, statements and other evidence collected during the probe.

It is important to note that the allegations and investigative actions mentioned in this report are based on information attributed to sources familiar with the investigation. They do not by themselves establish guilt, and the companies and individuals concerned remain entitled to due process.

News source: Information for this article was gathered from a variety of reliable news outlets.