DGGI Widens Hyderabad GST Investigation, Searches Three Fintech Firms Across Major Cities
Hyderabad: The Directorate General of GST Intelligence (DGGI), Hyderabad Zonal Unit, has widened its investigation into alleged Goods and Services Tax (GST) irregularities connected to a multi-crore online betting case. As part of the ongoing probe, officials recently carried out searches at three technology and fintech companies in Chennai, Mumbai and Bengaluru, according to sources familiar with the investigation.
The multi-city enforcement operation, which concluded last week, focused on collecting documents, electronic records and other material that investigators believe could help establish the flow of transactions and determine the role of various entities allegedly linked to the betting-related GST case.
During the searches, DGGI officials reportedly recovered important documents and digital evidence from IppoPay Technologies Private Ltd. At the premises of RUGR Fintech Pvt Ltd, officials were unable to conduct the search after finding the office closed and a work-from-home notice displayed at the premises. Summons were subsequently issued to a company director.
In Bengaluru, officials visited the office of DecFin Tech Pvt Ltd but found the premises locked. The office was later sealed under Section 67(4) of the Central Goods and Services Tax (CGST) Act, with investigators citing concerns that relevant evidence could potentially be altered or removed.
Documents and digital evidence recovered from IppoPay
One of the key searches in the latest operation took place at IppoPay’s Chennai office last month. According to DGGI sources, officers entered the premises and recovered documents that they considered relevant to the investigation, along with electronic records stored on laptops and hard drives.
Employees present at the office reportedly cooperated with the officials and provided statements during the search. Investigators also collected information from cloud storage systems, mobile phones and laptops as part of their effort to trace digital transactions and other records.
However, senior members of the company’s management were reportedly unavailable when the search was conducted. Sources said the company’s director and chief technology officer could not be contacted, with their phones either switched off or unreachable.
The seized material is expected to be examined as investigators work to understand the financial and technological links between the companies under scrutiny and the wider online betting-related transactions.
RUGR office found closed
The DGGI team also attempted to conduct searches at the Bengaluru premises of RUGR Fintech on March 30 and April 1. However, officials reportedly could not execute the search after finding the office closed.
Sources alleged that there was a lack of cooperation from the company’s representatives. According to investigators, repeated calls and messages to the company’s directors did not receive a response.
With the search unable to proceed, the DGGI issued summons under Section 70 of the CGST Act to RUGR director KV Arangasamy, directing him to appear before the investigating officers on April 8 and provide information in connection with the case.
The summons are part of the broader effort to obtain records and statements that could help investigators determine whether the company or its officials had any role in the alleged GST violations.
DecFin office sealed in Bengaluru
A similar situation was reported at the Bengaluru office of DecFin Tech Pvt Ltd. DGGI officials visited the premises on April 2 but found the office locked.
According to sources, the building manager told the officials that the office had been closed for two days because of what was described as “networking issues.”
The investigating team subsequently decided to seal the premises under Section 67(4) of the CGST Act. Sources said the action was taken because of alleged non-cooperation and concerns that important evidence could be tampered with or removed.
The sealing of the office gives investigators an opportunity to preserve the premises and any material that may be relevant to the ongoing inquiry.
Probe linked to online betting case
The latest searches are part of a larger investigation being conducted by the DGGI’s Hyderabad Zonal Unit into alleged GST violations associated with an online betting network.
The case has already attracted significant attention following the arrest of Rishi Gupta, CEO of Fino Payments Bank. His arrest forms part of the broader investigation into the alleged financial and GST-related transactions connected with the betting operation.
Gupta subsequently approached the Telangana High Court seeking relief, including quashing of the case and bail. However, the court dismissed his plea.
The latest searches indicate that investigators are continuing to follow the financial and technological trail surrounding the case. By examining documents, digital devices, cloud records and statements from company officials, the DGGI is attempting to establish how different entities may have been connected and whether GST obligations were allegedly avoided or improperly handled.
The investigation remains ongoing, and the material recovered during the recent searches is expected to undergo further scrutiny before the agency reaches conclusions about the involvement of the companies or individuals concerned.
Note: The allegations and investigative findings described above are based on information attributed to DGGI sources; they do not by themselves establish guilt.
News source: Information for this article was gathered from a variety of reliable news outlets.
