Hyderabad Businessman Dies By Suicide, Fraud And Tax Burden Linked To Tragic Incident

Mallikarjun, who had a chips business, was in despair after being told to pay Rs 64 lakh in GST.

Hyderabad: A businessman from Gandipet died by suicide on Thursday, allegedly due to mounting pressure from the GST department.

The family members of Mallikarjun (39) and his business partner claimed he was driven to despair after being told to pay Rs 64 lakh in GST. Mallikarjun had registered his chips manufacturing business under a GST number, but was shocked to discover that it had been used for unauthorized transactions in unrelated sectors, leading to the tax demand.

Caught in a web of fraud

A resident of Langar House Kishanguda, Mallikarjun had started his business in Bandlaguda with his friend Mallesh. He had sought the assistance of a chartered accountant (CA) from Karmanghat for his GST registration. However, it later emerged that, while Mallikarjun’s business was registered for chips manufacturing, transactions involving sand, gravel, steel, and other construction materials had been carried out under the same GST number in joint Mahabubnagar district.

As per family members, Mallikarjun had informed them that the CA often contacted him for OTP verification. After receiving multiple mails and phone calls from the GST department demanding Rs 64 lakh in dues, Mallikarjun and Mallesh sought the help of another CA, only to discover the scale of the fraud. They found that the CA who had registered his GST had used the number for illicit business activities.

Complaint Filed

On Thursday night, Mallesh filed a complaint with Narsinghi police. Mallikarjun’s brother revealed to ETV Bharat that his sibling took his own life after realizing he was being held responsible for unauthorized transactions linked to the GST registration number.

On New Year, a poor couple from Kamalapur village in Bhupalapalli mandal, a poor couple ended their lives after being harassed by private money lenders.While Banoth Devender (37) and his wife Chandana (32) subsisted on agriculture, their children Rishi (14) and Jaswant (12) study at a government school. A few months back, Chandana, along with a few other women of the village, had borrowed Rs 2.50 lakh from a private lender, committing to pay Rs 200 every week as installment. Despite paying regularly for years, she fell behind in her payment in recent months due to the illness of her husband and children. The mounting pressure from the lender, coupled with the family's worsening financial strain, took a severe toll on their mental health.

Suicide is not a solution: If you are having suicidal thoughts, or are worried about a friend or need emotional support, someone is always there to listen. Call Sneha Foundation - 04424640050 (available 24x7) or iCall, the Tata Institute of Social Sciences' helpline - 9152987821, which is available Monday to Saturday from 8 am to 10 pm.