The director of the film “The Accidental Prime Minister,” Vijay Ratnakar Gutte (VRG), has been arrested by the Directorate General of Goods and Services Tax (GST) Intelligence officials for defrauding Rs 34 crore by submitting fake invoices. In the film, Anupam Kher essays the role of Manmohan Singh. The movie is slated to be released on December 21.
“The Accidental Prime Minister” directed by VRG, is an upcoming 2018 biographical-political drama written by Mayank Tewari. The film stars Anupam Kher as Manmohan Singh, the politician and economist, who served from 2004 to 2014 as the Prime Minister of India under the United Progressive Alliance. On December 21, 2018, the movie is scheduled to be released.
According to officials, the director of VRG Digital Corporation Vijay Gutte, were deeply involved in the circular trading along with two other firms and with the help of bogus invoices fraudulently claimed input credit. In GST, input tax credit is an option that allows the taxpayers to claim credit for taxes paid on the purchase.
From the premises of Bombay Casting Talent Management Pvt. Ltd. (BCTMPL), the officials collected an invoice, which was raised by Kher, which was a part of the Bohra Bors Group Company, asking for initial fee payment as evidence against VRG. In the case, Kher is not involved.
From June 2017 to September 2017, the officials said that VRG had paid Rs 115 crores to BCTMPL through their execution vendor Horizon Outsource Solution Pvt Ltd (HOSPL). Although services to VRG has been provided by BCTMPL, but to VRG, the invoices were issued by HOSPL. VRG was supposed to pay BCTMPL for the services through HOSPL according to the agreement. According to the officials, the HOSPL was indicated by the MoU as not a service provider, rather it was just a route to make the payments. To show the quantum of money invested in the film by BCTMPL, VRG and BCTMPL were undertaking circular transactions.
Amit Upadhyay, the director of HOSPL along with the proprietor of BCS, Anwar Sayyed was arrested in May by GST officials in this case. They said that in this circular transaction, more companies were involved. For collecting and not depositing Rs 47 crores with the government, Upadhyay was arrested. Officials also said that through fake GST invoices with the help of Sayed and evaded tax, he also allegedly received Rs 79.38 crore.
Till August 14, VRG has been remanded in the judicial custody. The officials stated that in his remand application the VRG procured invoices only from HOSPL without the receipt of services and goods with the main intention to avail ineligible input tax credit.