Opposition leader in the Kerala Assembly, VD Satheesan, on Wednesday levelled serious allegations against the state government, accusing it of committing a massive fraud of Rs 1,100 in connection with fake GST registration in the state in the last financial year.
Addressing a press conference here, Satheesan said that although the state suffered a GST loss of Rs 200 crore in this regard, the government conducted no probe to locate the perpetrators.
Describing the fraud as shocking, he pointed out that a single gang was behind the fraudulent transactions amounting to Rs 1,100 crore. He said registrations were obtained in the names of common people without their knowledge, and transactions were carried out through the fraudsters’ accounts.
The Opposition leader said that while the Pune Intelligence Unit managed to uncover the scam, the state’s response was limited to cancelling the registrations.
“The state government merely cancelled the registrations after receiving information about the cheating from the GST Intelligence Department in Pune. Even those who had been victimised by the fraud are yet to be informed about it,” he said.
Claiming that the GST system is collapsing, he said, “What we are seeing is just the tip of the iceberg. There are no effective safeguards to prevent fraudulent registrations, and no foolproof mechanisms in place.” Satheesan said. He added that the situation amounts to both tax fraud and data theft.
Alleging that sections of GST officials themselves have links with the fraudsters, Satheesan accused the government of deliberately shielding these officials. Action should be taken against the officials involved in the fraud, he demanded.
Stating that the revelation regarding the GST fraud is just the tip of the iceberg, the senior Congress leader demanded a CBI investigation into the scam to ensure accountability.
“It is just the tip of the iceberg. Since it is a case with inter-state ramifications and connected to the Integrated Goods and Services Tax (IGST), a CBI probe should be conducted into it,” Satheesan said.
Referring to the Sabarimala gold plating controversy, he asked why the gold plating of the ‘Dwarapalaka Idols’ at Sabarimala, done in 1999 with a 40-year guarantee, was showing signs of fading now, and why no inquiry had been initiated despite proof of weight reduction.