CBI books ex-BHEL officer, 3 others in GST input credit diversion case

Hyderabad: The Central Bureau of Investigation has registered a case against a former finance officer of Bharat Heavy Electricals Limited (BHEL) and three private individuals for allegedly diverting goods and services tax (GST) input credits meant for subcontractors at the Kothagudem thermal power project.The FIR, filed on Nov 6 following a complaint from BHEL's chief vigilance officer, names G Siva Nageswara Rao, then senior accounts officer/deputy manager at BHEL-Kothagudem, along with Marakala Somireddy, Ch Ramakrishna (site-in-charge, Vasavi Electro Systems Private Ltd, and proprietor of RK Power Systems), and Raavi Srinivasa Rao, proprietor of Durga Cranes. According to the complaint, Nageswara Rao allegedly diverted GST input credits belonging to subcontractors — Shankaranarayana Constructions Private Ltd, Power Mech Projects Ltd, and Vasavi Electro Systems Pvt Ltd — to unrelated entities. A forged letter purportedly issued by Shankaranarayana Constructions was allegedly used to authorise third party payments from BHEL's dues. The CBI conducted searches at six locations across Telangana and Andhra Pradesh, including Hyderabad, Bhadradri Kothagudem, Khammam, Medchal Malkajgiri, and Guntur, and seized what it described as ‘incriminating documents.'Investigators reportedly found fraudulent third-party releases from withheld GST and retention amounts belonging to the subcontractors. Deposits of ₹68 lakh were traced to the accounts of the accused officer and his family members, prompting a criminal probe. The case has been registered under IPC sections 120-B (criminal conspiracy), 420 (cheating), and 471 (forgery), along with section 13(2) read with 13(1)(a) of the Prevention of Corruption Act. The CBI secured necessary approvals under the PC Act and from the department of personnel and training. BHEL had executed the 1x800 MW (stage VII, unit 12) project for Genco at Kothagudem. The investigation will focus on the alleged forgery, fund diversion, and potential disproportionate assets.

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