Hyderabad: GST officials arrested EcoRenn Energy Managing Director Lakshmi Prasad Yerneni in a major Hyderabad GST evasion case. Officials accused him of claiming about ₹64.5 crore in input tax credit through fake invoices.
EcoRenn Energy operated in the renewable energy sector. According to official sources, investigators uncovered the alleged tax fraud during a probe into the company’s financial transactions.
Officials alleged that the company used a network of shell entities to generate fake invoices. It then claimed input tax credit without genuine supplies or eligible business transactions.
Moreover, investigators found that those involved allegedly routed funds through several bank accounts. The transactions formed part of a suspected arrangement to support the disputed tax credit claims.
Hyderabad GST evasion probe traced shell companies
GST authorities booked Yerneni under Sections 132(1)(c) and 132(1)(i) of the Central Goods and Services Tax Act. These provisions covered alleged wrongful input tax credit claims and related offences.
Subsequently, officials produced the accused before a court. The court remanded him to judicial custody until August 7.
Following the court order, authorities shifted Yerneni to Chanchalguda Central Jail. Meanwhile, the Hyderabad GST evasion investigation continued into the alleged shell company network and movement of funds.
Officials examined the bank accounts used in the transactions. They also reviewed the invoices that allegedly supported the ₹64.5 crore input tax credit claim.
The case emerged as one of the significant GST enforcement actions reported in Hyderabad. However, officials had not released further details about other entities or individuals linked to the alleged network.
The investigation focused on establishing the flow of money, the role of the shell companies and the authenticity of the invoices.