Officers of the CGST Bengaluru East Commissionerate conducted search proceedings at the premises of M/s Lhakhar Technologies Private Limited, Bengaluru, engaged in Online Real Money Gaming (ORMG), leading to the detection of GST evasion of approximately ₹27.05 crore. During the course of the investigation, two persons suspected to be master minds have been arrested under the provisions of the CGST Act, 2017, for their alleged involvement in the offence.

The investigation revealed that the company was operating an Online Real Money Gaming platform and processing player deposits through multiple payment gateways and banking channels. It is alleged that, despite restrictions on real money gaming, the company continued its operations in the guise of an e-commerce operator while substantially suppressing its taxable outward supplies in GST returns.

Preliminary analysis of the company's banking transactions indicate that it facilitated Online Real Money Gaming transactions with an approximate taxable value of ₹97 crore during the relevant period, resulting in an estimated GST liability of ₹27.05 crore, which was neither declared nor discharged.

The investigation has prima facie revealed a deliberate modus operandi of under-reporting turnover while continuing large-scale gaming operations. The role of payment gateways, banking institutions, and other entities connected with the transactions is also under investigation.

Considering the magnitude of the tax evasion and its wider public implications, the CGST Bengaluru East Commissionerate is conducting a comprehensive investigation. Further investigation is in progress.

 

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