Online Betting GST Case: DGGI Hyderabad Conducts Searches at Fintech Firms in Three Cities, Seizes Documents and Digital Records
The Directorate General of GST Intelligence (DGGI), Hyderabad zonal unit, has stepped up its investigation into alleged GST irregularities linked to a multi-crore online betting case. As part of the probe, DGGI officers searched the offices of three technology and fintech companies in Chennai, Mumbai and Bengaluru last week.
During the searches, officers seized important documents and digital records. The action was carried out under provisions of the Central Goods and Services Tax (CGST) Act.
In Chennai, DGGI officers searched the office of IppoPay Technologies Pvt Ltd last month. They found documents and electronic data stored on hard drives and laptops. Employees gave statements to the officers and shared data from cloud storage, mobile phones and laptops.
However, senior officials of the company, including its director and chief technology officer, were not available during the search. Their phones were reportedly switched off or could not be reached, according to DGGI sources.
DGGI officers also tried to search the Bengaluru office of RUGR Fintech Pvt Ltd on March 30 and April 1. However, the office was found shut and a work-from-home notice was displayed. The company’s directors reportedly did not respond to calls and messages from the officers.
Following this, DGGI officials issued summons under Section 70 of the CGST Act. The company’s director was asked to appear before the agency for questioning on April 8.
In another action, DGGI officers visited the Bengaluru office of DecFin Tech Pvt Ltd on April 2 but found the premises locked. The building manager told the officers that the office had been closed for two days due to networking problems.
The officers later sealed the premises under Section 67(4) of the CGST Act. They cited concerns that important evidence could be tampered with because of the company’s alleged non-cooperation.
The latest searches are part of the wider investigation by DGGI Hyderabad into an online betting-linked GST case. Fino Payments Bank CEO Rishi Gupta has already been arrested in connection with the case.
The Telangana High Court has also dismissed Gupta’s plea seeking to quash the case and grant him bail.
