Vijayawada: Vijayawada police have arrested P. Sarath, son of former minister and Telugu Desam leader Prathipati Pulla Rao, for misappropriating government funds by creating a fake voice in the name of a fake company.
In a press release on Saturday, NTR district police commissioner Kanthi Rana Tata explained that on February 25, 2024, the deputy director of Andhra Pradesh State Directorate of Revenue Intelligence filed a complaint regarding misappropriation of public funds by Avexa Corporation.
Machavaram police registered a case under Cr.No.63/2024 U/s 420, 409, 467, 471, 477(A), 120(B) R/w 34 IPC and investigated the matter. During investigation, they found that Prathipati Sarath, as director of Avexa Corporation, had received Input Tax Credit (ITC) illegally by issuing forged invoices for GST payment.
Director General of GST Intelligence (DGGI) found that Avexa had made transactions worth ₹49.46 crore with 12 shell companies. The company representatives then created invoices and claimed input tax credit of ₹8 crore, thereby defrauding the government exchequer.
The company had thus been issued a show-cause notice and a demand notice proposing a fine of around ₹16 crore.
Investigators also found that GST registrations of 12 companies, through which Avexa had transacted, had been cancelled in 2021.
Kurra Jogeswara Rao, who is the current director of Avexa, has turned approver in the case. He has confessed to committing illegalities by filing false GST returns on forged documents. A confessional statement of Jogeswara Rao has already been recorded.
Police commissioner Kanthi Rana said Machavaram police arrested Prathipati Sarath on February 29 for illegally profiteering. He has been produced in court, which has remanded him to judicial custody.
