Vijay Ratnakar Gutte, the director of Anupam Kher starer 'The Accidental Prime Minister', and son of sugar baron Ratnakar Gutte, has been arrested for alleged GST fraud to the tune of Rs 34 crore.
Vijay Ratnakar Gutte, the director of Anupam Kher starer ‘The Accidental Prime Minister’, and son of sugar baron Ratnakar Gutte, has been arrested for alleged GST fraud to the tune of Rs 34 crore. A report in The Indian Express said that he was arrested by the Director General of Goods and Services Tax Intelligence (DGGSTI) in Mumbai. It said that Gutte’s firm is accused of claiming a refund by submitting ‘fake invoices’ since July 2017.
It said that documents show Gutte’s firm VRG Digital Corp Pvt Ltd is accused of accepting ‘fake invoices’ for animation and manpower services availed from Horizon Outsource Solutions Pvt Ltd for Rs 34 crore. Horizon Outsource Solutions is already under the scanner of the government for GST fraud of over Rs 170 crore.
According to court documents, VRG Digital Corp had also wrongly claimed for a cash refund of Rs 28 crore from the government against the Central Value Added Tax (CENVAT). It said that the firm had submitted fake invoices for animation and manpower services received from Horizon Outsource Solutions Pvt Ltd. VRG Digital had received these fake invoices since July 2017.
The IE report said that Gutter has been booked under Section 132 (1)(c) of the CGST Act which pertains to wrongfully claiming input tax credit using bills and invoices that have been issued without any supply of goods or services.
The remand application filed in the court shows that Gutte had also fraudulently claimed the refund of non-existence input tax credit from the GST by furnishing fake invoices, the report said. The government also said that he was not cooperating with the officials in the probe. A local court in Mumbai has now sent him to the judicial custody till August 14.
It was reported in May that directors of two Mumbai-based firms — Horizon Outsource and Best Computer Solutions Pvt Ltd — were arrested in connection with a fraud of Rs 173 crore. During the probe, the DGGSTI had found that Horizon Outsource had illegally taken Rs 80 crore as GST credit by submitting fake invoices of software services received from Best Computer.
The probe also revealed that Horizon Outsource had issued bogus invoices showing GST of Rs 47 crore to its clients including Gutte’s VRG Digital.
The remand application shows VRG Digital receiving services of about Rs 266 crore with a GST implication of Rs 40 crore. However, during investigation, it was found that there was no exchange of goods and services between the two groups.
Gutte has so far produced three films – Emotional Attyachar, Time Bara Vait and Badmashiyaan. ‘The Accidental Prime Minister’, which is based on Sanjay Baru’s book, is his directorial debut. Baru was the media advisor and chief spokesperson of former PM Manmohan Singh between 2004 and 2008.