During raids conducted on January 12–13, 2026, at the principal business location, additional sites, and residences, officials discovered closed or non-existent premises with minimal business activity. Statements recorded under Section 70 of the CGST Act, 2017 indicated that the proprietor’s father controlled operations and admitted to filing fake ITC claims.
Arrests and Judicial Custody
The two individuals arrested the proprietor and his father were identified as the direct beneficiaries of the tax evasion. They were produced before the Duty Magistrate and remanded to judicial custody for 14 days. The offence is punishable under Section 132 of the CGST Act, 2017.
Investigation Ongoing
CGST authorities continue to investigate the case to trace the flow of funds and identify any additional beneficiaries involved in the fraudulent scheme. Officials have indicated that further arrests and action may follow as the probe progresses.