Hans News Service Karimnagar

Irregularitiesin the granite trade across the integrated Karimnagar district are increasingly coming under scrutiny, with multiple enforcement agencies exposing what appears to be a well-organised tax evasion network.

After earlier findings by Vigilance and Enforcement officials, the entry of the Directorate General of GST Intelligence (DGGI) into the probe has revealed the extent to which government revenue was allegedly being siphoned off.

Acting under Sections 132(1)(a) and 69 of the CGST Act, DGGI officials arrested Srikant Dasari, a resident of Asifnagar in Karimnagar, for his alleged role in orchestrating large-scale GST evasion. He was produced before the Economic Offences Court in Nampally, Hyderabad.

The arrest followed extensive searches conducted over two days at premises linked to granite traders and transporters in and around Karimnagar.

According to investigators, Dasari was operating a firm named M/s Manoj Enterprises, which was allegedly used as a front to facilitate illegal transport of granite blocks and slabs without payment of GST. Officials found that e-way bills worth nearly Rs 80–100 crore were generated under the firm’s name.

As the transactions aren’t disclosed in the GST returns, the firm consistently filing nill returns. This resulted in an estimated tax evasion of Rs 16.96 crore.

Recently, the probe revealed that Dasari coordinated operations involving several granite factories and transporters in the region. Fake invoices and e-way bills were allegedly created using a mobile number registered in his wife’s name. Investigators also discovered that the firm’s GST registration was linked to a bank account held in the name of one of his friends, suggesting that others were being used as fronts to carry out the operations.

In a significant finding, the individual listed as proprietor of M/s Manoj Enterprises, Manoj Thara, was reportedly unaware of the firm’s existence.

Authorities said his Aadhaar, PAN, and other documents had been misused by members of the granite syndicate to register the entity.

DGGI officials stated that the firm was primarily created to enable the illegal movement of granite from Karimnagar to Hyderabad without valid invoices or e-way bills. During interrogation, Dasari is said to have admitted to playing an active role in managing the covert supply network. Officials also indicated the involvement of individuals from Rajasthan in the operation.

As part of the crackdown, DGGI teams seized illegally transported granite from locations including Serilingampally and Ghatkesar, and intercepted trucks near Pragnyapur.

Officials also found that much of the money involved in these operations was being handled in cash, often routed through drivers instead of formal banking channel — a method that made the transactions harder to trace.

What has emerged from the probe is not an isolated violation but a closely coordinated network, where brokers, transporters and factory operators appeared to be working in tandem.

DGGI Hyderabad officials said the investigation is still ongoing, and efforts are being made to identify everyone connected to the operation and understand how far the network extends.