A widening investigation into alleged GST irregularities linked to an online betting case has prompted enforcement action across multiple cities.
The Directorate General of GST Intelligence Hyderabad unit has conducted searches at 3 technology and fintech firms in Chennai, Mumbai, and Bengaluru. The operation led to the seizure of key documents, digital evidence, and action under provisions of the CGST Act.
During the searches, officials recovered records from IppoPay Technologies Private Ltd, issued summons at the premises of RUGR Fintech Pvt Ltd after finding its office shut with a work-from-home notice, and sealed the Bengaluru office of DecFin Tech Pvt Ltd under section 67(4) of the CGST Act, citing concerns of possible evidence tampering.
Statements were recorded from key executives of IppoPay, while RUGR’s director was directed to appear for inquiry after repeated attempts to establish contact failed.
The search at IppoPay’s Chennai office was conducted last month. Officials accessed the premises and recovered documents along with electronic data stored on hard drives and laptops. Staff provided voluntary statements and shared data from cloud storage, mobile phones, and other devices. However, senior management, including the director and chief technology officer, were reportedly unavailable.
Attempts to inspect RUGR’s Bengaluru office on March 30 and April 1 were unsuccessful due to what officials described as non-cooperation. Summons were later issued under section 70 of the CGST Act, directing director KV Arangasamy to appear for inquiry on April 8.
In the case of DecFin, officials found the Bengaluru office locked during a visit on April 2. The premises had reportedly been closed for 2 days due to networking issues. Authorities sealed the office citing risk of evidence tampering.
The action is part of an ongoing probe into a multi-crore GST case linked to online betting. Earlier, Rishi Gupta was arrested in connection with the case. The Telangana High Court has dismissed his plea seeking to quash the case and grant bail.
The investigation continues as authorities expand scrutiny into fintech entities and their role in alleged tax irregularities.
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