First criminal case registered under GST, 2 arrested

TNN
September 7, 2018

Bengaluru, Sept 7: In a first for Karnataka, the commercial taxes department of Karnataka has apprehended two Bengaluru-based businessmen for alleged goods and services tax (GST) violations. The duo had committed serious fraud by raising fake invoices to pocket Rs 8.2 crore in the form of Input Tax Credit (ITC).

Commercial tax sleuths found the accused had availed ITC without selling any goods or services and without anyone paying GST. The arrested are Hameed Rizwan Parthipady Ismail, proprietor of ARS Enterprises in Mathikere, and Jeetendra Kantilal Gandhi, who owns Gandhi Iron and Steel Company in Kalasipalyam. The latter pretended to be the former’s customer in the fraud.

An economic offences court in Bengaluru remanded the duo in judicial custody, while the enforcement wing of the commercial tax department is conducting further investigation into the first GST-related criminal case in the state. “As we have made two arrests, it is a major development in the compliance journey of GST,” said commercial taxes commissioner MS Srikar.

The fraud came to light after the department’s data analytics software (GSTPro) threw up hints at a string of suspicious transactions involving ARS Enterprises, a firm in Chikkabanavara dealing in ferrous and non-ferrous scrap.

The department’s enforcement team led by additional commissioner Nitesh K Patil and assistant commissioner G Viswanatha arrested Ismail after physical inspection of his business area. Ismail has been accused of issuing GST invoices worth Rs 45.9 crore to his customers in the 13-month period since the launch of GST, without any sale taking place.

However, after recording the sale/purchase transactions, Ismail as well as a number of his customers claimed ITC from the department. Gandhi was found to be one such customer. He is the second person arrested in the case.

The case highlighted that data-based intelligence is key to ensuring a higher degree of compliance, the department said in a press note.

Tax evasion: Firm fined Rs 53 cr

In a separate case, tax officials have imposed a Rs 53 crore penalty on a city-based paints and decoration company for evading tax. The company, which has its registered office in Yeshwantpur and manufacturing unit in Malur industrial area, is alleged to have evaded commercial tax for months. It didn’t respond to notices issued by the department. A team of GST officials on Wednesday conducted raids on both the corporate office and the manufacturing unit. Officials said they decided to impose the penalty after verifying the documents seized from the company.

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News Network
December 19,2025

Mangaluru: In a decisive move to tackle the city’s deteriorating sanitation infrastructure, the Mangaluru City Corporation (MCC) has announced a massive ₹1,200 crore action plan to overhaul its underground drainage (UGD) network.

The initiative, spearheaded by Deputy Commissioner and MCC Administrator Darshan HV, aims to bridge "missing links" in the current system that have left residents grappling with overflowing sewage and environmental hazards.

The Breaking Point

The announcement follows a high-intensity phone-in session on Thursday, where the DC was flooded with grievances from frustrated citizens. Residents, including Savithri from Yekkur, described a harrowing reality: raw sewage from apartments leaking into stormwater drains, creating a "permanent stink" and turning residential zones into mosquito breeding grounds.

"We are facing immense difficulties due to the stench and the health risks. Local officials have remained silent until now," one resident reported during the session.

The Strategy: A Six-Year Vision

DC Darshan HV confirmed that the proposed plan is not a temporary patch but a comprehensive six-year roadmap designed to accommodate Mangaluru’s projected population growth. Key highlights of the plan include:

•    Infrastructure Expansion: Laying additional pipelines to connect older neighborhoods to the main grid.

•    STP Crackdown: Stricter enforcement of Sewage Treatment Plant (STP) regulations. While new apartments are required to have functional STPs, many older buildings lack them entirely, and several newer units are reportedly non-functional.

•    Budgetary Push: The plan has already been discussed with the district in-charge minister and the Secretary of the Urban Development Department. It is slated for formal presentation in the upcoming state budget.

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News Network
December 15,2025

Mangaluru, Dec 15: Air India Express has announced that it will resume direct flight services between Mangaluru and Muscat from March 2026, restoring an important international air link for passengers from the coastal region.

Airport authorities said the service will operate twice a week—on Sundays and Tuesdays—from March 1. The initial flights are scheduled on March 3, 8 and 10, followed by March 15 and 17, with the same operating pattern to continue thereafter. The flight duration is approximately three hours and 25 minutes.

The Mangaluru–Muscat route was earlier operated under the 2025 summer schedule, with services beginning on July 14. At that time, Air India Express had operated four flights a week before suspending the service.

Officials said the summer schedule will come into effect from March 29, after which changes in flight timings and departure schedules from Mangaluru are expected. Passengers have been advised to check the latest schedules while planning their travel.

The resumption of direct flights to Muscat is expected to significantly benefit expatriates, business travellers and others, further strengthening Mangaluru’s air connectivity with the Gulf region.

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coastaldigest.com news network
December 20,2025

Mangaluru, Dec 20: City Police Commissioner Sudheer Kumar Reddy has issued a high-alert warning to vehicle owners regarding a surge in cyber fraud targeting those looking to pay traffic violation fines. Fraudsters are reportedly exploiting recent government discount schemes on traffic penalties to deceive citizens.

The Scam: How Fraudsters Strike

Criminals are using SMS, WhatsApp, and social media to circulate suspicious links and APK files (Android application packages). They claim these apps allow users to pay e-challans at a discount.

•    Device Hacking: Downloading these unauthorized apps gives hackers full access to the victim's smartphone.

•    Financial Theft: Once the phone is compromised, fraudsters intercept OTPs and personal data to drain bank accounts.

•    Phishing Sites: Fake websites mimicking official portals are also being used to harvest banking credentials.

Already, two residents within Mangaluru city limits have reported significant financial losses after falling victim to these fraudulent apps.

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