Hyderabad CCS Books CA in Rs 464.8 Crore Foreign Remittance Scam

The Hyderabad Central Crime Station (CCS) has booked a chartered accountant operating out of Madhura Nagar in Hyderabad for allegedly facilitating unauthorised outward foreign remittances of over Rs 464.8 crore through two shell entities.

The accused, identified as Hari Shankar Reddy Renati, along with others, was booked by the CCS Detective Department on August 22 following a complaint lodged by G Krishna Rao, deputy director of Income Tax (Investigation), FAIU-1, Hyderabad. The alleged illegal remittances occurred during the financial years 2021-22 and 2022-23.

According to the FIR, the case involves Form 15CB certificates issued for Clickwin Techno Solutions LLP, registered in Pune, Maharashtra, and Stockpile Softech Solutions Pvt Ltd, registered in Visakhapatnam, Andhra Pradesh. Investigators described both entities as fictitious or shell operations that were not running from their registered addresses and had failed to file income tax returns.

A physical verification of the registered office of Stockpile Softech Solutions Pvt Ltd revealed that the premises had been occupied by another firm, eProSoft India Private Limited, for the past five years. Despite these irregularities, the two entities transferred a total of Rs 464.8 crore out of India across the two financial years.

Form 15CB is a tax determination certificate issued by a chartered accountant under Rule 37BB of the Income Tax Rules for foreign remittances exceeding Rs 5 lakh in a financial year. The certification requires examining agreements, transaction records, and determining tax liabilities before funds can be transferred through authorised dealer banks.

Investigators alleged that Renati issued multiple Form 15CB certificates without reviewing the books of accounts, agreements, or supporting documents of the two firms. Banks processed the foreign remittances relying on these certifications. In a recorded statement cited in the FIR, Renati stated that he had neither seen nor verified the books of accounts before issuing the certificates.

The Income Tax investigation wing had previously searched Renati's premises on August 18. Investigators alleged the certificates were issued for monetary gain, leading to wrongful gain for those involved and facilitating the illicit transfer of foreign exchange.

The CCS registered the case against Renati and others under Sections 420, 193, and 197 read with Section 34 of the Indian Penal Code.