Kerala GST’s biggest catch yet, man held for Rs 126-crore evasion
Prathapan Kolatt Dasan, director of Highrich Online Shoppe Pvt Ltd, based in Neruvissery, Arattupuzha, was arrested by the GST intelligence Kasaragod unit on December 1. When contacted, Rameshan Kolikara, senior intelligence officer, intelligence wing, Kasaragod, state GST, confirmed the arrest but provided no further details. However, sources said it’s strange that the GST department is yet to release news of Prathapan’s arrest. “Normally, the GST department issues press statements promptly in tax evasion cases of over Rs 5 crore. It seems there is an attempt to cover up something,” said the source.
Prathapan was remanded in judicial custody by the Ernakulam Additional Chief Judicial Magistrate (Economic Offence) Court. On November 24, the GST intelligence Kasaragod unit raided the office of Highrich Online Shoppe in Arattupuzha based on information of GST evasion. Following the search, it was revealed that the company suppressed a turnover of Rs 703 crore and that its tax liability was Rs 126.54 crore.
Based on the investigation, company directors Prathapan and Sreena K S were summoned to the office of deputy commissioner (intelligence) Kerala GST in Thrissur on November 30.
However, soon after the search, the company paid Rs 1.5 crore and Rs 50 crore on November 24 and 27, respectively. Kerala GST also has imposed a 15% penalty on the firm. However, with over Rs 75 crore in pending liability, Prathapan was arrested.
An officer with the GST intelligence wing, who wished to remain anonymous, said the department’s preliminary assessment is that the company had operations in other states and the turnover is likely to be more. It is learnt that the company’s directors have admitted to the offence. According to Kerala GST intelligence officials, Highrich Shoppe is an e-commerce platform, based on MLM model.
Meanwhile, steps initiated by Kerala GST after detecting the case drew flak within the department. “Usually, accounts of the company and the accused are frozen to bar any further transactions, including withdrawal of money. Here, though the case was detected on November 24, no steps were taken to freeze the bank accounts,” said an insider.
