Rs 34.01 crore penalty imposed on Fastlane, accused company in AP Fibernet scam

AMARAVATI: The Andhra Pradesh State Directorate of Revenue Intelligence (APSDRI) has imposed a penalty of Rs 34.01 crore on Fastlane Information Technologies Private Ltd, one of the companies involved in the AP FiberNet case, for alleged tax evasion. The company was served a demand for tax along with interest and imposing of penalty for violation of the provisions of APGST Act,2017 from the APSDRI.

According to APSDRI, Goods and Service Tax (GST) is an indirect tax and the seller had to collect the GST from the buyer, and the same had to be deposited with the Government. But, in this case Fastlane Information Technologies Private Ltd had collected the GST from its buyers, but it did not deposit the same with the Government within the stipulated time, for which penalty was imposed.

“Based on the available evidence, it is concluded that they had evaded the taxes and diverted the funds of about Rs 10.81 crore to their related firms/companies. This money pertains to the Andhra Pradesh Fibernet Project,” the officials said and added that AP CID had also filed a case. According to officials, Fastlane was utilised by Terasoftware to divert and misappropriate the funds released by the AP State Fibernet Ltd.

The former managing director of Fastlane Viplav Kumar Valluri in his statement stated that they could not pay the taxes as APSFL had not paid the invoice amounts to them even though they deducted TDS. On verification by the APSDRI, it was found that the claim was wrong . They had received the amounts and diverted the funds to their related firms/companies like Netops, XYZ innovations and Koffee media.

Netops had invested that amount in the real estate company being owned by Vemuri Hari Prasad, who is a prime accused in the alleged AP Fibernet Scam and an associate of the then Chief Minister N Chandrababu Naidu. The officials said that the company had not paid the amounts to their vendor viz Ingram, but had approached the National Company Law Tribunal (NCLT). Their application was admitted in NCLT and Fastlane is now under insolvency.

The officials also said that Viplav in his statement stated that Fastlane was incorporated on the request of Tummala Gopi Chand, managing director of Tera Soft Ltd to assist him in the APSFL project. Gopichand is another accused in the Fibrenet case. The Fasstlane had stopped filing the GST returns in Andhra Pradesh in September 2020 and its registration was cancelled by the Government. Viplav Kumar, who was arrested by CID earlier, is now on bail, the officials added.