VAT scam: Police arrested accused

Hyderabad, April 16: Police of the Central Crime Station has been arrested an alleged kingpin of an organized crime syndicate that evaded Value Added Tax (VAT) to the tune of Rs 5.56 crore here on Saturday.

The accused name is V V Subba Reddy alias Stengun Reddy, a native of Kadapa district living in Hyderabad. Police officials said the prime accused ganged up with others and furnished fake identity proofs while registering with the Commercial Taxes Department as a trader and secured TIN numbers.

Later, the gang sold out the way bills to various businessmen, who had not registered with the Commercial Tax Department, to transact business in edible oils, pulses and other grains.