GST: 5 arrested in Rs 225 cr evasion case

Indore, Jun 17: An industrialist accused of GST evasion of nearly Rs 225 crore while illegally producing and selling pan masala and tobacco products has been arrested by the tax authorities.

A Pakistani national and three others were already arrested in this matter.

Kishore Wadhwani, the industrialist, was arrested from a hotel in Mumbai on Monday under “Operation Kark”, a crack- down on large-scale evasion of tax, sources in the Directorate General of GST Intelligence (DGGI) said.

A court in Mumbai granted the authorities his transit remand with a direction to produce him in a court in Indore, the sources said.

Officials of the DGGI and Directorate of Revenue Intelligence (DRI) recently raided a number of places at Indore and Ujjain and recovered huge quantities of pan masala and other tobacco products, manufactured illegally.

The trade was being conducted through dummy companies, sources said.

Wadhwani and others were found to have evaded Goods and Services Tax of nearly Rs 225 crore and the amount was expected to rise to Rs 400 crore with further probe, they added.

Sanjay Matta (33), who holds a Pakistani passport, was arrested on June 2. He was living in Indore for a long time.

His questioning led to arrest of three more persons on June 12. Further investigations are on, sources added.