Hyderabad, Oct 11 : The Telangana Commercial Taxes Department has unearthed fraudulent GST refunds to the tune of Rs 45.67 crore by seven taxpayers and arrested a key accused on Wednesday. These taxpayers had floated certain firms showing the fictitious activity of manufacturing electric bikes. Officials said the fictitious firms were floated with an intention to take the GST refund fraudulently under inverse tax structure. It was shown by the fraudsters that the spare parts were purchased from some fictitious firms that are registered at Delhi and the sales of electric bikes were shown in Telangana. The verification by the department revealed that there was no manufacturing activity and there was no movement of goods from Delhi to Hyderabad. One of the key persons involved, Vemireddy Ramakrishna Reddy was arrested on Wednesday. He was produced before the Court for Economic Offences, Nampally, which remanded him to judicial custody. Investigation against others is being initiated by the department with the help of task force police. The investigation was carried out by K. Geetha, Joint Commissioner of State Tax, Madhapur Division and her team under supervision of Dr. T.K. Sreedevi, Commissioner of Commercial Taxes, Telangana. /IANS