DGGI Cracks Down on Fintech Firms in Major GST Evasion Probe
The Directorate General of GST Intelligence (DGGI), Hyderabad zonal unit, has intensified its investigation into a large-scale GST evasion case linked to online betting operations, conducting coordinated searches across multiple fintech firms in cities including Chennai, Mumbai, and Bengaluru.
The enforcement action led to the seizure of critical documents and digital evidence from companies such as IppoPay Technologies, while summons were issued to directors of other entities like RUGR Fintech for non-cooperation. In a significant step, authorities also sealed the Bengaluru office of DecFin Tech under Section 67(4) of the CGST Act, citing concerns over potential tampering of evidence.
Investigators recorded statements from company officials and collected data from electronic devices, cloud storage, and internal systems. However, senior executives in certain firms were reportedly unavailable or unresponsive during the searches, raising further suspicion regarding compliance lapses.
The crackdown is part of a broader probe into an alleged multi-crore online betting-linked GST evasion network, where fintech intermediaries are suspected to have facilitated financial transactions through inadequate KYC checks, shell entities, and complex fund routing mechanisms.
This development highlights increasing regulatory scrutiny on fintech companies, payment gateways, and digital intermediaries, particularly in high-risk sectors such as online gaming. Authorities are now focusing not only on operators but also on enablers within the financial ecosystem.
Overall, the case underscores the government’s aggressive stance on curbing tax evasion and enforcing stricter compliance standards in the rapidly expanding fintech and digital payments sector.
