GST Fraud

• Mysuru-based businessman bribery case: CBI books senior GST officer
• He had taken Rs. 1 cr. to derail a Rs. 21 cr. input tax credit fraud probe

Bengaluru: The Central Bureau of Investigation (CBI) has registered a corruption case against a senior officer of Directorate General of GST Intelligence (DGGI) for allegedly accepting Rs. 1 crore bribe from a Mysuru-based businessman to derail investigation into an alleged Rs. 21-crore GST input tax credit fraud.

According to reports from Bengaluru, the accused, Praveen Kumar Yadav, then serving as a senior intelligence officer with DGGI, allegedly accepted the bribe from Mohammed Kamran, a scrap materials businessman from Mysuru, on Sept. 11, 2025. Yadav is currently under suspension from the Central GST unit in Bengaluru.

CBI registered the case last week after receiving required sanction under the Prevention of Corruption Act. The action came a day after the Karnataka High Court, on July 7, upheld Kamran’s arrest by the DGGI on Sept. 16, 2025, rejecting his contention that it was illegal.

According to the FIR, Kamran, a resident of No. 7, Bannimantap Layout, Mysuru, alleged in a complaint dated Sept. 16, 2025, that during a search at his residence in Bannimantap on Sept. 10, 2025, Yadav and other Central GST officers demanded Rs. 1 crore to help him escape.

SOM report

It may be recalled, on Sept. 18, 2025, Star of Mysore had published a report titled ‘Rs. 419 cr. GST fraud link in city!’ when Bengaluru unit of DGGI had arrested a 24-year-old businessman for his alleged involvement in a fraudulent input tax credit racket involving transactions worth Rs. 419 cr.

Mohammed Kamran was arrested on Sept. 16, 2025, upon his arrival from Mumbai at Kempegowda International Airport, Bengaluru. He had been absconding along with his father, Akram Pasha, the prime accused in the case, after GST officials raided their residence and other properties on Sept. 10, 2025.

Cash handed over at 9.30 pm

The complaint states that around 9.30 pm the same day, Yadav shared his location on WhatsApp and asked Kamran to bring the money. Kamran allegedly met him at Parklane Hotel in Mysuru and handed over Rs. 1 crore in cash.

The FIR alleges that Yadav contacted Kamran the following day through WhatsApp and demanded an additional Rs. 4 crore to close the investigation.

A preliminary inquiry conducted by the DGGI reportedly found that Yadav had maintained unauthorised contact with Kamran, met his associates near Beer Garden/Parklane Hotel in Mysuru and failed to disclose these interactions to his superior officers.

Complaint to CBI: The DGGI submitted a complaint to CBI on Oct. 6, 2025, following its preliminary inquiry and authorisation to investigate the officer under Prevention of Corruption Act was issued on Oct. 29, 2025.

The DGGI had accused Kamran, proprietor of M.K. Traders, and his associate firms of fraudulently claiming input tax credit exceeding Rs. 21 crore by using fake invoices issued by fictitious suppliers without any actual supply of goods or services.

Kamran was arrested on Sept. 16, 2025, the same day he lodged the corruption complaint against Yadav.

A prosecution complaint under the GST Act was filed on Nov. 13, 2025. He was granted bail about three months later and subsequently approached the High Court challenging the legality of his arrest, but the court dismissed his plea.