Is a Ludhiana Businessman Arrested for Rs 9 Crore GST Fraud?
Synopsis
A businessman from Ludhiana has been arrested for GST fraud worth Rs 9 crore. This operation, led by the Punjab government, uncovers a network of fake invoices and tax evasion, impacting state revenue significantly. The investigation is expanding to include other suspected manufacturers.
Key Takeaways
A businessman from Ludhiana arrested for Rs 9 crore GST fraud.
Fake invoices for coils and strips were issued without actual supply.
Significant losses to the state treasury were reported.
Investigation is expanding to other manufacturers.
The government maintains a zero-tolerance policy towards tax evasion.
Chandigarh, Feb 12 (NationPress) A businessman from Ludhiana has been taken into custody for his alleged involvement in a Goods and Services Tax (GST) fraud amounting to Rs 9 crore, as stated by Punjab Finance Minister Harpal Singh Cheema on Thursday.
According to Cheema, a significant operation led by the state’s Intelligence and Preventive Unit in Ludhiana resulted in the arrest of Rohit Gupta, the owner of Maa Steel, executed by the Taxation Department.
“The Taxation Department has revealed a substantial GST fraud where Maa Steel was discovered issuing fraudulent invoices for coils and strips without any legitimate supply of products,” he remarked.
This fraudulent scheme managed to pass on an Input Tax Credit exceeding Rs 9 crore to multiple beneficiaries, resulting in a notable and severe loss to the state’s treasury.
During the investigation, the department uncovered significant inconsistencies between the actual stock present and the records maintained by the firm.
The minister indicated that the scope of the investigation is expanding.
“We are currently scrutinizing several manufacturers of cycle parts and spare parts suspected to be involved in this scheme. These businesses are being investigated for improperly claiming export refunds or benefits through an inverted duty structure,” he added.
“Our government is dedicated to vigorously combatting tax evasion, safeguarding government revenues, and ensuring equitable treatment for every compliant taxpayer in Punjab,” he stated.
Regarding internal administrative discipline, Finance Minister Cheema announced the dismissal of an Excise and Taxation Inspector under the Punjab Civil Services (Punishment and Appeal) Rules, 1970, due to prolonged unauthorized absence.
Stressing the government’s stance on discipline, he stated: “The Bhagwant Mann government is firm that no form of indiscipline will be tolerated. We have already terminated four employees for similar misconduct, and disciplinary actions are in process against another Excise and Taxation Inspector and a clerk for comparable offenses.”
Reiterating the government’s commitment to accountability, efficiency, and a disciplined work culture, Cheema affirmed that these actions reflect that determination. “We will uphold a zero-tolerance policy towards tax evasion and any misconduct by public servants,” he concluded.
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NationPress
20 Jun 2026
Frequently Asked Questions
What is the GST fraud amount involved?
The GST fraud amount involved is Rs 9 crore.
Who was arrested in this case?
Rohit Gupta, the owner of Maa Steel, was arrested.
What actions are being taken against tax evasion?
The Punjab government is conducting thorough investigations and has dismissed employees involved in misconduct.
