DGGI Intensifies Crackdown on Online Betting GST Scam; Multi-City Searches Conducted Across Fintech Firms
DGGI Intensifies Crackdown on Online Betting GST Scam; Multi-City Searches Conducted Across Fintech Firms
In connection with a major GST scam related to online betting, the Directorate General of GST Intelligence (DGGI), Hyderabad, has intensified its investigation. The authorities have initiated a search operation against three technology and fintech companies located in Chennai, Mumbai, and Bengaluru. During the multi-city operations, which were completed last week, the authorities seized many important documents and digital evidence and took enforcement action under provisions of the CGST.
During the search at Ippopay Technologies Private Limited, which is in Chennai, the team found documents and electronic records that are considered important for the investigation. The employees present there cooperated and gave their statement, and also provided data from laptops, mobiles, and cloud storage. However, senior officers of the company, such as directors and the chief technology officer, were not in touch at that time.
Then, the DGGI team attempted to search the Bengaluru office of RUGR Fintech Private Limited on 30 March and 1 April. They also pasted a summons notice at the office under Section 70 of the CGST Act because it was closed and had a “work from home” notice. The director appeared for questioning on April 8, 2026. When the DGGI officers tried to connect with the directors, they did not respond to calls or messages.
Similarly, action was also taken at the Bengaluru office of DecFin Tech Private Limited on 2 April. When the officers reached there, they found the office closed. The building manager reported that a “networking problem” had caused the office to close for a few days. But the officials suspected that the evidence might be tampered with, so they sealed the premises under Section 67(4) of the CGST Act.
This entire action is part of the larger GST case related to online betting, which is being investigated by DGGI Hyderabad. Rishi Gupta, who is the CEO of Fino Payments Bank, has already been arrested in connection with this case. Telangana High Court has rejected his demand for cancellation of the case and bail.