Senior tax officials in Hyderabad accused of fraudulent penalty demands for bribe payments; Investigation launched

Hyderabad: A case has been registered at the ACB Hyderabad police station under sections 420 of the IPC and sections 7 and 7A of the Prevention of Corruption Act (PC Act) of 1988, as amended in 2018. The accused are public servants allegedly involved in obtaining undue advantages for the dishonest performance of their duties.

The accused include, Quamar Aulam Khan (A1), the then Senior Tax Assistant, Circle 12(1); Manish Sikrawal (A2), the then Senior Tax Assistant, Ward 12(1); Gulnaz Rawoof (A3), the then Income Tax Inspector, Ward 12(1); Kuthadi Srinivas Rao (A4), the then Income Tax Inspector, Circle 12(1); Mohammad Javeed (A5), the then Tax Assistant, Ward 12(1); Pulimamidi Bhagath (A6), Chartered Account (Private person); Unknown public servants and private persons (A7).

According to the First Information Report (FIR), a reliable source revealed that on June 23, 2023, the Income Tax Department circulated a master Excel sheet to several circles and wards, instructing Assessment Officers (AOs) to send notices to assessees claiming large refunds. However, the Additional Commissioner of Income Tax (Addl. CIT), Range-I, Hyderabad, later called off the initiative, instructing the Wards and Circles to stop sending notices and delete the Excel file.

Despite the order, Quamar Aulam Khan and Manish Sikrawal allegedly defied the instructions, retaining a copy of the sensitive information with the intent to misuse it. Quamar Khan is said to have contacted the individuals from the master list, inviting them to the office. Sikrawal assisted in providing information from Ward 12(1), and the duo is accused of transferring PAN numbers of assessees from Ward 4(1) to Ward 12(1) or Circle 12(1). They then used official emails to ask assessees to submit documents supporting their refund claims.

Quamar Khan and Sikrawal are accused of conspiring with other Income Tax officers, including Gulnaz Rawoof, Kuthadi Srinivas Rao, and Mohammad Javeed, along with private individual Bhagath, to extort bribes under the guise of imposing penalties on the tax refund claims. The accused allegedly threatened assessees with hefty penalties if they did not comply. Bhagath, posing as a facilitator for rectifying tax returns, is said to have collected the bribes.

According to the FIR, there were several transactions between Bhagath and Quamar Aulam Khan between September 15, 2023, and November 13, 2023, as well as between Bhagath and Gulnaz Rawoof in September 2023. Further transactions occurred between Bhagath and Srinivas Rao from October 18, 2023, to November 22, 2023.

The Telangana government granted consent under Section 6 of the Delhi Special Police Establishment (DSPE) Act, 1946, for the investigation. The Government of India also issued a notification under Section 5 of the DSPE Act on March 26, 2025, allowing the Central Bureau of Investigation (CBI) to investigate the case.

The Telangana government has also decided to refer the investigation to the CBI under Section 6 of the DSPE Act to facilitate a thorough probe into the matter.