The director of a Thrissur-based multi-level marketing (MLM) company, Prathapan Kolatt Dasan of Highrich Online Shoppe Pvt Ltd, has been apprehended by the Kerala GST intelligence wing on charges of tax evasion amounting to Rs 126 crore. This marks the state GST department’s most significant case of GST evasion to date. The arrest, conducted by the GST intelligence Kasaragod unit on December 1, is surrounded by a degree of secrecy, with the GST department yet to issue a public statement on the matter, raising suspicions of potential concealment.
Prathapan, detained by the Ernakulam Additional Chief Judicial Magistrate (Economic Offence) Court, faced charges after a November 24 raid on Highrich Online Shoppe’s office in Arattupuzha. The investigation revealed that the company had concealed a turnover of Rs 703 crore, resulting in a tax liability of Rs 126.54 crore. Following the search, the company promptly paid Rs 1.5 crore on November 24 and Rs 50 crore on November 27, with a 15% penalty imposed by Kerala GST. Despite these payments, Prathapan was arrested due to a remaining liability exceeding Rs 75 crore.
An anonymous GST intelligence wing officer suggested that the company likely operated in other states, hinting at a potentially higher turnover. Company directors Prathapan and Sreena K S reportedly admitted to the offense. Highrich Shoppe, identified as an e-commerce platform employing an MLM model, now faces scrutiny for its financial practices.
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