When the investigation wing of the Hyderabad GST Commissionerate (Central Tax) investigated the producer, he accepted his mistake. The sources revealed that he paid Rs 2 Cr on spot and sought another 10 days time to repay the balance amount. Hyderabad GST Commissionerate revealed that the producer has not been paying GST from the past seven months despite of collecting them from his clients. Their investigation revealed that the producer spent over Rs 60 Crores in producing three hit movies since July 2017.
Earlier, the notices were served on the producer to appear before the department and to submit the relevant documents indicating the cost of production, remuneration paid to artistes and other technicians.
The sources said, “The non-bailable warrant along the five years of imprisonment can be imposed in such cases, if he does not cough up the tax due with penal interest within a week. “ It has been widely speculated to be noted producer and distributor Dil Raju but his team denied the allegations.