P. Sarath, son of a senior TDP Leader arrested by the Machavaram Police under the Vijayawada Police Commissionerate on February 29. The police allege that Sarath, as the former director of Avexa, defrauded the state government of crores of rupees.
The son of a senior Telugu Desam Party (TDP) leader, P Pulla Rao, has been arrested by the Andhra Pradesh police on charges of cheating and GST evasion. The arrest of P Sarath, former director of Avexa, a private company, has stirred political discussions in the southern state.
Allegations and Arrest:
P Sarath was arrested by the Machavaram Police under the Vijayawada Police Commissionerate on February 29. The police allege that Sarath, as the former director of Avexa, defrauded the state government of crores of rupees. This was reportedly achieved through the use of shell companies, fake invoices, and other illegal methods to secure government contracts without delivering the promised goods or services.
Legal Proceedings:
Following the arrest, Vijayawada Police Commissioner Kanthi Ratan Tata stated that Sarath played a significant role in these illegal transactions. Sarath was presented before the court and subsequently sent to judicial remand.
Charges and Investigations:
The Andhra Pradesh State Directorate of Revenue Intelligence (APSDRI) lodged a complaint on February 25, accusing Avexa Corporation Pvt Ltd of fraudulent activities. The police have registered a case under various sections of the Indian Penal Code (IPC), including 420, 409, 467, 471 (A), and 120 B read with 34.
According to complaint of APSDRI, Avexa allegedly produced forged invoices for GST payments to claim input tax credit (ITC). An investigation by the Director General of GST Intelligence (DGGI) reportedly uncovered fake transactions amounting to Rs 49 crore, claiming Rs 8 crore in input tax credit. The company used 12 shell companies for these transactions, resulting in a proposed penalty of Rs 16 crore by the DGGI.
Additional Irregularities:
Apart from these allegations, Avexa is accused of obtaining a work order from BSR Infratech India Pvt Ltd but failing to execute any work. Despite this, they allegedly claimed Rs 2 crore in input tax credit. The company also claimed to have conducted works worth Rs 26 crore to fraudulently claim input tax credit.
Political Response:
The arrest of Sarath has taken on political dimensions in Andhra Pradesh. TDP supremo N Chandrababu Naidu has written to Governor S Abdul Nazeer, alleging that the YSRCP government is using state enforcement agencies, such as APSDRI, to target TDP leaders for economic and political weakening.
Naidu, the opposition leader, claims that the government has specifically formed APSDRI to target TDP leaders, including the recent arrest of Sarath. The situation has sparked political debates in the state.
The arrest of P Sarath, son of a senior TDP leader, on charges of cheating and GST evasion has brought attention to the alleged fraudulent practices in Avexa Corporation Pvt Ltd. The political fallout of this incident continues to unfold in Andhra Pradesh.
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