Sharath is now at the Vijayawada jail under a 14-day judicial remand, courtesy of the First Additional Chief Metropolitan Magistrate.
Former TDP minister's son Prathipati Sharath arrested. (Supplied)
In a dramatic turn of events, Sharath Prathipati, son of former TDP Minister and current Chilakaluripet Assembly contestant Prathipati Pulla Rao, was arrested by the Andhra Pradesh State Directorate of Revenue Intelligence (APSDRI) on Thursday, 29 February.
Facing charges ranging from alleged money laundering, GST evasion, and various other irregularities, Sharath is now at the Vijayawada jail under a 14-day judicial remand, courtesy of the First Additional Chief Metropolitan Magistrate.
Amidst cries of “political vendetta” from the TDP, the Revenue Intelligence Directorate contends that Sharath played a pivotal role in securing Input Tax Credit (ITC) without proper GST documentation. He has also been accused of fund diversions.
The APSDRI, in a statement issued on Saturday, 2 March, detailed the genesis of the case, which was registered on 25 February. It followed a complaint against Sharath Prathipati, the proprietor of Avexa Corporation Pvt ltd.
Notably, six others, including Pulla Rao’s wife and brother-in-law, were also implicated in the case.
According to the statement, the Director General of GST Intelligence (DGGI) initially uncovered Avexa’s intricate web of deceit, involving 12 shell companies, purportedly raking in profits of ₹49.46 crore. The subsequent creation of invoice bills totalling eight crore was claimed as Input Tax Credit from the government, resulting in a substantial loss to the exchequer.
The DGGI issued a show cause and demand notice of a ₹16 crore fine and cancelled the GST of 12 shell companies in 2021.
The APSDRI alleged that Avexa, in the Amaravati road construction project, secured a sub-contract from BSR Infratech Limited, which secured the project from the Andhra Pradesh Capital Region Development Authority (APCDRA). Despite obtaining a work order worth ₹26 crore, Avexa did not perform any work yet submitted invoice bills of ₹2 crore to unlawfully claim Input Tax Credit.
Further complicating matters, Avexa allegedly had an unofficial contract from the same company, presenting bills and records totalling ₹17.70 crore, transferring them to other companies: Khwahish Marketing Private Limited, Noida Spat India Limited, and Prasant Ind Corp. This manoeuver allowed Avexa to claim ₹2.70 crore in Input Tax Credit from the government, adding to the loss suffered by the exchequer.
Jogeswara Rao Kurra, Director of Avexa, reportedly admitted to the DGCI that the company fabricated bills to illicitly claim benefits.
The APSDRI alleged that Avexa then funneled 10 crore each to Yellow Stone Private Estate Limited and Prathipati Estate Limited, where the former minister’s wife, son, and brother-in-law hold directorial positions.
Consequently, the APSDRI stated that it arrested Sharath for further investigation.
In response to his son’s arrest, Prathipati Pulla Rao of the TDP decried political vendetta, accusing the YSRCP-led government of concocting false cases against Opposition parties to stifle dissent.
Undeterred by these false allegations, he asserted his resilience in the face of what he considers baseless accusations, highlighting that the cases against his son and family surfaced within 24 hours of the TDP confirming its Chilakaluripet MLA ticket.
Meanwhile, TDP chief and former chief minister N Chandrababu Naidu penned an open letter to Andhra Pradesh Governor S Abdul Nazeer, articulating his concerns about the YSRCP’s purported targetting of Opposition TDP leaders and cadre. Naidu, in his letter, contended that the YSRCP government, through the APSDRI, aims to weaken the TDP economically and politically by resorting to threats.
“For this arrest, Chilakala Rajeswara Reddy was appointed as the Special Commissioner of the APSDRI, a close associate of the YSRCP,” the TDP chief alleged in his letter.
Naidu added, “Sharath was only an Additional Director in the said firm, hardly for 68 days — 9 December 2019 to 14 February 2020. In the complaint lodged by the Deputy Director of APSRDI, an inquiry was launched by the Directorate General of GST Intelligence (DGGI), Government of India, and accordingly, a notice was served regarding payment of ₹16 crores as a fine.”
“It is not only surprising but also shocking to know that the APSDRI took over a case already under inquiry by the DGGI. Is it not targetted harassment of TDP leaders and their families by making false accusations and foisting unknown linkages and affecting arrests?” he questioned.
ఎన్నికల వేళ జగన్ కక్ష సాధింపు రాజకీయాలు మరింత తీవ్రమయ్యాయి. ప్రభుత్వ ప్రేరేపిత ఉగ్రవాదంతో వ్యవస్థలను అడ్డుపెట్టుకుని తెలుగుదేశంపార్టీ నాయకులను వేధిస్తున్నారు. ఇందులో భాగమే మాజీమంత్రి ప్రత్తిపాటి పుల్లారావు గారి కుమారుడు శరత్ అక్రమ అరెస్టు. శరత్ అక్రమ అరెస్టును తీవ్రంగా… pic.twitter.com/lvX0k2FfBe
— N Chandrababu Naidu (@ncbn) February 29, 2024
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