Hyderabad: Investigators have uncovered an interstate tax evasion racket in the granite trade, where bogus companies allegedly used stolen identity documents to move high value stone consignments without paying dues.The network, traced to traders in Khammam and Karimnagar, is believed to have operated across Telangana, Rajasthan and Madhya Pradesh for nearly a year, causing losses estimated at around Rs 100 crore, with officials warning the final figure could be much higher. The commercial taxes department in Telangana alerted counterparts in the affected states, pointing to the role of interstate middlemen who allegedly coordinated the operation. The shell firms allegeldy used unsuspecting individuals’ Aadhaar and PAN cards’ details to move goods across states without proper documentation.Sought-after graniteBlack granite from Khammam is in high demand for kitchen platforms and staircases in northern markets, creating opportunities for illegal trade channels. Several out-of-state agents operating locally are believed to have helped businesses bypass mandatory e-Way bills. According to officials, poor or unsuspecting individuals were paid as little as Rs 5,000 to hand over copies of their identity documents. Fake firms were then registered in their names and used to dispatch granite without invoices or with fabricated e-Way bills. When authorities attempted tax recovery, many of these companies turned out to be non-existent, with bogus or untraceable addresses. Movement of goodsSources said transport vehicles from other states were used to further complicate tracking, allowing operators to evade the additional 18% tax applicable on interstate movement of goods. Innocent document holders may now face legal scrutiny and will have to prove they were unaware of the misuse. Suspicious travel patterns of certain vehicles eventually exposed the network. So far, five to six companies have been identified. “We are gathering more details. Once we complete the investigation, we will determine whether taxes should be levied at 200 per cent more than what is normally owed or if legal cases will be filed. As a precaution, citizens should be careful about sharing their Aadhaar numbers with anyone,” said the officials.
