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GST fraud case: The Accidental Prime Minister director gets bail

Vijay Ratnakar Gutte was arrested on August 2 by the Directorate General of Goods and Services Tax Intelligence (DGGI) for an alleged Goods and Services Tax (GST) fraud of at least Rs 34 crore.

By: Express News Service | Mumbai |
August 15, 2018 1:21:56 am
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A Mumbai court on Tuesday granted bail to Vijay Ratnakar Gutte, director of the film, The Accidental Prime Minister, and son of sugar baron Ratnakar Gutte. He was arrested on August 2 by the Directorate General of Goods and Services Tax Intelligence (DGGI) for an alleged Goods and Services Tax (GST) fraud of at least Rs 34 crore.

The court granted bail to Gutte on condition that he would pay Rs 34 crore to the government in the next five to six months. Gutte, according to sources, has already paid over Rs 8 crore since his arrest and has assured the court that he would pay the remaining amount in the next few months.

Gutte’s firm, VRG Digital Corp Pvt Ltd, has been accused of taking “fake invoices”, involving GST of Rs 34 crore, for animation and manpower services received from Horizon Outsource Solutions Pvt Ltd — a company that has come under the scanner of the government agency for GST fraud of over Rs 170 crore. VRG Digital Corp is also accused of wrongly claiming a cash refund of Rs 28 crore from the government against Central Value Added Tax credit received for these fake invoices since July 2017.

The Indian Express had first reported on May 19 that directors of two Mumbai-based firms — Horizon Outsource Solutions Pvt Ltd and Best Computer Solutions Pvt Ltd — were arrested in connection with alleged service tax and GST fraud of Rs 173 crore. The DGGI has found that Horizon Outsource had wrongly taken GST credit of Rs 80 crore from the government by showing fake invoices of software services received from Best Computer Solutions. The probe has also found that Horizon Outsource also issued bogus invoices showing GST of Rs 47 crore to its clients.

The agency’s probe revealed that Gutte’s VRG Digital Corp was one of the top clients of Horizon Outsource Solutions and was shown as receiving services of about Rs 266 crore with a GST implication of Rs 40 crore, even as there was no actual supply of services.

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