Central Delhi tax officials arrest one for illegal manufacturing of gutkha with liability of around Rs 5.9 crore

Last updated: 22 February 2021

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Central Delhi tax officials have successfully dismantled an illegal operation involved in the clandestine manufacturing and supply of "Suhana Gold" and "SHK" brand gutkha. The investigation, which began with an initial arrest on January 2nd, 2021, led to further searches and the apprehension of two key operators in February. The person in charge of the illegal manufacturing, Phool Chand Yadav, confessed to his involvement and admitted a tax liability of around £5.9 crore. He was arrested on February 18th, 2021, under the CGST Act, 2017, with a total of four individuals arrested so far as the investigation continues.

Acting on intelligence regarding illegal manufacturing and clandestine supply of gutkha/pan masala/tobacco product namely “Suhana Gold” and “SHK” brands without registration and payment of duty, Anti-Evasion officers of Central Tax Delhi had conducted an operation which busted the racket and led to the arrest of one of the key persons on 02.01.2021. Development of further intelligence and consequent searches at multiple locations led to arrest of the two key operators on 16.02.2021.

Follow up searches based on the leads in the investigation were conducted at multiple premises and another 5 FFS machines manufacturing “SHK” Gutka were found to be operational. The person in charge of the illegal manufacture, one Phool Chand Yadav, admitted to his involvement in his statement and to his liability of Rs. 5.9 crore approx. He was arrested on 18.02.2021 under section 132 of the CGST Act, 2017 and remanded judicial custody.

Gutkha Racket Busted: Rs 5.9 Cr Tax Evasion

In all 4 accused have been arrested till now and investigation is under process.

FAQ :

An illegal manufacturing and clandestine supply racket of gutkha/pan masala/tobacco products, specifically "Suhana Gold" and "SHK" brands, was uncovered.

The estimated tax liability for the illegal manufacturing of gutkha is approximately £5.9 crore.

Phool Chand Yadav, the person in charge of the illegal manufacture, was arrested. In total, four accused have been arrested so far.

Phool Chand Yadav was arrested under section 132 of the CGST Act, 2017.

Two key operators were arrested on February 16th, 2021, following further intelligence and searches.

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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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