HYDERABAD: An alleged tax-evasion fraud involving agents sending students to study medicine in the Philippines was busted by the Warangal unit of the directorate general of GST intelligence (DGGI) on Friday after searches in Hyderabad, Vijayawada, Chennai and Pune.
Officials suspect the racket could run into several hundreds of crores as the accused have been operating for over 20 years. Agents collected the initial fee in cash minus any invoice, thereby pocketing the entire amount without paying any tax, officials claimed. The DGGI arrested David K Pillai, president of Transworld Educare Pvt Ltd based out of Pune and Chennai, on Friday and produced him in a court in Hyderabad, which sent him to jail on judicial remand.
According to officials, a consortium of medical colleges in the Philippines appointed Transworld as their principal education associate. Transworld then posted agents across the country to get students. GST sleuths found that Hyderabadbased associate SG Consultancy Services had sponsored more than 550 students to the Philippines.
Incriminating documents and voluntary depositions by various directors and other key people revealed that Transworld had allegedly evaded a little over Rs 11 crore in GST, officials said. Two bank accounts of Transworld have been attached.
Officials suspect the racket could run into several hundreds of crores as the accused have been operating for over 20 years. Agents collected the initial fee in cash minus any invoice, thereby pocketing the entire amount without paying any tax, officials claimed. The DGGI arrested David K Pillai, president of Transworld Educare Pvt Ltd based out of Pune and Chennai, on Friday and produced him in a court in Hyderabad, which sent him to jail on judicial remand.
According to officials, a consortium of medical colleges in the Philippines appointed Transworld as their principal education associate. Transworld then posted agents across the country to get students. GST sleuths found that Hyderabadbased associate SG Consultancy Services had sponsored more than 550 students to the Philippines.
Incriminating documents and voluntary depositions by various directors and other key people revealed that Transworld had allegedly evaded a little over Rs 11 crore in GST, officials said. Two bank accounts of Transworld have been attached.
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