DGGI gives Chandrakar, Uppal 30 days to respond to Rs 40,603 crore GST demand

Mumbai: The Directorate General of GST Intelligence (DGGI) has given Mahadev Book promoters Saurabh Chandrakar and Ravi Uppal, along with other notices, 30 days to respond to show-cause notices proposing a combined GST liability of more than Rs 40,603 crore for transactions allegedly linked to the betting network between April 2020 and March 2024.

A public notice issued by the DGGI’s Raipur Zonal Unit calls upon the noticees to make their submissions before the concerned GST authorities within 30 days of publication of the notice . The notices relate to alleged non-payment of GST and include a proposed demand of tax and penalties.

The DGGI has assessed the aggregate taxable value of the transactions covered by the proceedings at Rs 1,45,010.77 crore. The proposed liability comprises Rs 35,517.22 crore for the period from April 1, 2020 to September 30, 2023, and a further Rs 5,085.80 crore in IGST for October 1, 2023 to March 31, 2024.


The first notice names 66 notices, while the second names 31 notices, with several individuals appearing in both proceedings. Chandrakar and Uppal have been named as promoters in the two notices issued on August 26.

Multiple agencies, including the DGGI, Central Bureau of Investigation (CBI) and Enforcement Directorate (ED), are probing alleged irregularities concerning the Mahadev Online Book betting application. According to the ED, the app generated proceeds of crime of Rs 4,000-5,000 crore annually since its alleged illegal operations began in 2019.

The ED’s probe has alleged that Mahadev Online Book functioned as an umbrella syndicate that facilitated online betting through various platforms, with new users enrolled and User IDs created through a network of operators. The agency has also alleged that funds were routed through a layered network of benami bank accounts.

The ED has further alleged that Mahadev Online Book operated through a franchise-based “panel” network from overseas and generated proceeds of crime exceeding Rs 450 crore every month. According to the agency, the funds were allegedly laundered through shell companies, accommodation entries and layered financial transactions before being invested in various assets.

Earlier this year, Chandrakar, described by investigating agencies as one of the alleged masterminds of the Mahadev syndicate, was arrested in Oman after allegedly entering the country on a forged Indonesian passport following his escape from the UAE. Indian authorities have initiated extradition proceedings in coordination with the CBI, according to sources.

Sources also said UAE authorities could seek Chandrakar’s extradition in connection with an alleged fake passport case. Chandrakar had earlier been detained by Dubai Police and placed under house arrest before allegedly fleeing, according to sources.

The DGGI public notice specifies that the two SCNs are deemed to have been served on the notice on the date of publication of the public notice. The department has also made the detailed show-cause notices available for inspection at the DGGI’s Raipur Zonal Unit.

The department’s investigation has mapped nearly 2,000 alleged betting panels, with statements indicating that individual panels received deposits ranging from Rs 5 lakh to Rs 10 lakh a day. Based on the panel network, investigators estimated aggregate daily deposits at around Rs 99 crore.

The DGGI has alleged that the network failed to obtain the requisite GST registration, file returns or discharge the applicable tax despite the scale of transactions attributed to it.

The proposed Rs 40,603.02 crore GST liability is subject to adjudication, with the notices being given an opportunity to respond to the allegations and proposed demand.