Hyderabad: Keshaan Industries accused of generating fake copper supply invoices in Rs 100 crore tax evasion case

Hyderabad: The Telangana State Commercial Taxes Department has unearthed a major and unprecedented tax fraud valued as much as Rs 100 crore, allegedly involving Keshaan Industries, a Hyderabad-based private firm. The department said that this is the first of its kind sophisticated form of tax evasion—raising invoices without the actual supply of goods.

As per the investigation, the company was allegedly creating documents for the transportation of substantial consignments, which are fake since there was no corresponding movement of goods.

Acting on credible intelligence, officials conducted coordinated inspections at the company’s corporate office on SP Road, Hyderabad; a godown at Bansilalpet, Secunderabad; and its factory units in Kalakal Automotive Park and Muppireddypally villages in Medak District.

What is the case about?

Keshaan Industries is alleged to have generated high-value tax invoices for the supply of copper materials without any corresponding movement of goods.

As per preliminary findings, empty vehicles were dispatched from Telangana to Maharashtra, while documentation falsely indicated the transportation of substantial consignments. The total value of these fraudulent invoices is suspected to exceed Rs 100 crores.

The fraud came to light through analysis of vehicle movement data, including toll gate records obtained from the National Highway Authority of India (NHAI). These records indicated that numerous vehicles passed through key toll points without carrying any goods—contradicting the e-way bills. Field intelligence further confirmed that invoices worth over Rs 100 crore may have been issued without actual supplies.

Sophisticated form of tax evasion

This sophisticated form of tax evasion, raising invoices without the actual supply of goods, is the first of its kind to be detected in Telangana. It represents a dangerous new trend in GST-related fraud. The company fraudulently availed Input Tax Credit (ITC) of approximately Rs 33.20 crores through such bogus transactions, thereby reducing its output tax liability.

As part of the enforcement measures, officials seized crucial documents, including books of accounts, registers, hard disks, and CCTV footage during the inspections. A formal complaint has been lodged with the Deputy Commissioner of Police (DCP), Central Crime Station (CCS), Hyderabad, with a request to register a criminal case against the company’s directors, Vikash Kumar Keeshan and Rajneesh Keeshan.

Similar case in Mehdipatnam

Investigations are underway to determine whether similar methods are being adopted by other business entities.

In a related development, another case was detected by Majid Hussain DSTO, Mehdipatnam 1 circle, Charminar division, involving a vehicle, which was found to have remained immobile since June 2025.

Despite this, multiple e-way bills were generated using the vehicle’s registration number, allegedly by various taxpayers, without actual goods movement. This act constitutes a violation of the CGST Act, 2017, and is suspected to involve criminal intent under Sections 318 and 336 of BNS. A separate complaint has been filed to initiate an FIR against the vehicle owner.

The Commercial Taxes Department said it is making all efforts to curb all types of illegal practices to evade legitimate taxes.