20 fake companies and one computer | Rs 1,200-cr GST fraud busted in Bengaluru

coastaldigest.com news network
November 15, 2018

Bengaluru, Nov 17: A two-month-long investigation into a web of fake companies has finally detected one of the biggest frauds in Bengaluru — the generation of fake bills worth Rs 1,200 crore — after the Goods and Services Tax (GST) regime was implemented last July in the country.

The GST authorities have arrested three persons -- Suhail, Hafeezur, and Basha – in Bengaluru for generating fake GST invoices amounting to Rs 1,200 crore. The tax evaded as a resulted of these fake invoices amounts to a whopping Rs 200 crore, the officials said. 

All the three accused were produced in front of the Economic Offenses Magistrate, Koramangala and sent to 14-days judicial custody at Parappana Agrahara jail. All the three accused persons, which were the kingpins in the racket, have confessed to their fraud. The department is expecting more arrests in the case in the coming days.

Though the companies floated were in Karnataka’s capital, the input tax credit may have been used by iron and steel producers located outside the State too, said investigators, who used data analytics to zero in on them. GST officials also believe that such fraudulent transactions are being seen in plastic, aluminium, iron and steel trade.

"These persons and the fake companies were engaged in trading of fake tax invoices for availing input tax credit by various steel scrap dealers and manufacturers of iron and steel products," G Narayanaswamy, Commissioner of Central Tax, Bengaluru South said.

According to him, it's just a "tip of the iceberg", as detailed investigations into this have been initiated. “It took us two months of meticulous investigation to unearth the module and arrest the three kingpins,” he said.

Officials said that Basha had obtained 14 GST registrations in the name of his relatives, while another accused, Suhail had obtained 6 GST registrations and have floated a combined 20 fake companies between them.

"Their modus operandi involved creating fake companies at fake addresses, issuing fake GST invoices and generating e-way bills with fake vehicle registration details without the supply of any goods," Narayanaswamy said.

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News Network
December 7,2025

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Mangaluru, Dec 7: A rare bamboo shrimp has been rediscovered on mainland India more than 70 years after it was last reported, confirming for the first time the presence of Atyopsis spinipes in the country. The find was made by researchers from the Centre for Climate Change Studies at Sathyabama Institute of Science and Technology, Chennai, during surveys in Karnataka and Odisha.

The team — shrimp expert Dr S Prakash, PhD scholar K Kunjulakshmi, and Mangaluru-based researcher Maclean Antony Santos — combined field surveys, ecological assessments and DNA analysis to identify the elusive species. Their findings, published in Zootaxa, resolve decades of taxonomic confusion stemming from a 1951 report that misidentified the species as Atyopsis moluccensis without strong evidence.

The shrimp has now been confirmed at two locations: the Mulki–Pavanje estuary near Mangaluru and the Kuakhai River in Bhubaneswar. Historical specimens from the Andaman Islands, previously labelled as A. moluccensis, were also found to be misidentified and actually belong to A. spinipes.

The rediscovery began after an aquarium hobbyist in Odisha spotted a shrimp in 2022, prompting systematic surveys across Udupi, Karwar and Mangaluru. Four female specimens were collected in Mulki and one in Odisha, all genetically matching.

Researchers warn the species may exist in very small, vulnerable populations as freshwater habitats face increasing pressure from pollution, sand mining and infrastructure development. All verified specimens have been deposited with the Zoological Survey of India for future reference.

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News Network
December 2,2025

Puttur: The long-cherished dream of a government medical college in Puttur has moved a decisive step closer to reality, with the Karnataka State Finance Department granting its official approval for the construction of a new 300-bed hospital.

Puttur MLA Ashok Kumar Rai announced the crucial development to reporters on Monday, confirming that the official communication from the finance department was issued on November 27. This 300-bed facility is intended to be the cornerstone for the establishment of the government medical college, a project announced in the state budget.

Fast-Track Implementation

The MLA outlined an aggressive timeline for the project:

•    A Detailed Project Report (DPR) for the hospital is expected to be ready within 45 days.

•    The tender process for the construction will be completed within two months.

Following the completion of the tender process, Chief Minister Siddaramaiah is scheduled to lay the foundation stone for the project.

"Setting up a medical college in Puttur is a historical decision by the Congress government in Karnataka," Rai stated. The project has an estimated budget allocation of Rs 1,000 crore for the medical college.

Focus on Medical Education Department

The MLA highlighted a key strategic move: requesting the government to implement the hospital construction through the Medical Education Department instead of the Health and Family Welfare Department. This is intended to streamline the entire process of establishing the full medical college, ensuring the facilities—including labs, operation theatres, and other necessary infrastructure—adhere to the strict guidelines set by the Medical Council of India (MCI). The proposed site for the project is in Bannur.

Rai also took the opportunity to address political criticism, stating that the government has fulfilled its promise despite "apprehensions" and "mocking and criticising" from opposition parties who had failed to take similar initiatives when they were in power. "Chief Minister Siddaramaiah has kept his word," he added.

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News Network
December 3,2025

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Mangaluru, Dec 3: A group of Congress workers gathered at the Mangaluru International Airport on Wednesday to welcome AICC general secretary K C Venugopal, but the reception quickly turned into a display of support for Deputy Chief Minister D K Shivakumar.

Venugopal arrived in the city to participate in the centenary commemoration of the historic dialogue between Mahatma Gandhi and Narayana Guru. The event, organised by the Sivagiri Mutt, Varkala, in association with the Mangalore University Sri Narayana Guru Study Chair, is being held on the university’s Konaje campus.

KPCC general secretary Mithun Rai and several party workers had assembled at the airport to receive Venugopal. However, the moment he stepped out, workers began raising slogans backing Shivakumar.

The university programme will be inaugurated by Chief Minister Siddaramaiah.

This show of support comes just a day after Siddaramaiah remarked that Shivakumar would lead the government “when the high command decides.” The chief minister made the comment after a breakfast meeting at Shivakumar’s residence—another public display of camaraderie between the two leaders amid ongoing attempts by the party high command to downplay their leadership rivalry.

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