Executive Director of Kairali Steels & Alloys Pvt. Ltd (Kairali TMT), one of the leading brands of rebars in Kerala, was arrested by the Directorate General GST Intelligence (DGGI), Thiruvananthapuram unit on April, 19 Monday for allegedly evading Goods and Services Tax (GST). In a press release, the DGGI said that they unearthed a cartel of units in the steel industry that were utilising and passing on fake input tax credits to facilitate the evasion of GST.
“The cartel was spearheaded by Humayoon Kalliyath,Proprietor of M/s Humayoon & Associates, Palakkad, who floated fictitious units in his name and the name of his accomplices only for this purpose,” the release said. Humayoon was arrested under Section 69 of CGST Act, 2017. He was produced before the Addl. Chief Judicial Magistrate, Thiruvananthauram and has been remanded to judicial custody for 14 days.
Kairali TMT is a leading company with Mohanlal as its brand ambassador. The company has factories in Palakkad and Salem. They claim that Steel Authority of India Limited (SAIL) has chosen Kairali TMT to be their only conversion agent in Kerala.
“Tax evasion, according to our findings, has been happening since 2017. There are many other companies related to Kairali Steels, the case is regarding cartel units of Kairali Steels. They used non performing benami companies for fake billing,” an officer who was in the investigation team told TNM.
The DGGI further stated that “the cartel issued fake invoices valued at about Rs.400 crore to ultimate beneficiaries thereby passing on fake Input Tax Credit of GST amounting to about Rs.43 crore.”
Mathew M Jolly, Principal Additional Director General DGGI, in the press note said that Humayoon was arrested for planning the scheme.
“The investigation team includes Hareendran K, Shahul Hameed A, Balagopal G, Kurian P Mathew, Senior Intelligence Officers, Vaishak R, Vaishakan, Ashok Kumar Datti, Manju Krishnadas, Intelligence Officers, and Jinu. The investigation was supervised by Krishnenthu Mintoo Raja, Deputy Director, DGGI(TRU) under the guidance of Nasser Khan, Additional Director,” the press release said.