Kerala finance minister K N Balagopal rejects GST fraud charges, ETCFO
Thiruvananthapuram: Finance minister K N Balagopal on Thursday dismissed opposition’s allegations of large-scale GST fraud in Kerala, asserting that the state has taken ‘strong and uncompromising measures’ compared to others. Responding to opposition leader V D Satheesan’s charge that over a thousand fraudulent GST registrations were active in the state, Balagopal said cases had been registered, arrests made and action taken against offenders. “Such frauds are happening across the country. But Kerala has intervened effectively and will continue to act firmly,” he said.
The minister made the remarks a day after Satheesan alleged that a racket siphoned off nearly Rs 1,100 crore through fake GST registrations during 2024–25, using unsuspecting citizens’ names without their knowledge. He claimed the state exchequer lost at least Rs 200 crore in revenue from one case detected by Pune’s GST intelligence unit, which alerted the Kerala govt in Feb 2025.
Satheesan accused the govt of restricting its response to cancelling bogus registrations, while failing to initiate criminal proceedings against culprits or complicit officials. “Why has the govt not acted to protect innocent citizens who became victims? Why were gaps in GST verification not fixed despite clear evidence? Why has revenue recovery not been pursued?” he asked at a press conference in Cantonment House on Wednesday.
He also demanded a CBI probe, arguing that the scam involved inter-state transactions under IGST and alleged that CPM-linked officials were occupying key posts in the state GST department. “This is not just about revenue loss, but about large-scale data misuse and betrayal of citizens’ trust. The govt has been a silent spectator,” he alleged.
Balagopal, however, maintained that Kerala’s record of enforcement against GST fraud was stronger than most states and reiterated that ‘no fraudster will be spared.’
