Central agency arrests Pakistani national linked to Rs 40 crore gutka supply chain in MP, Maharashtra

NEW DELHI: A Pakistani national was arrested from Indore on Wednesday by the Directorate General of GST Intelligence (DGGI), the GST enforcement wing of Central Board of Indirect Taxes and Customs (CBIC), for clandestinely running a gutka manufacturing unit in MP. The agency has unearthed illegal distribution of banned pan masala and tobacco in highly Covid-affected cities of Indore and some other districts of MP and neighbouring Maharashtra worth Rs 40 crore.
The Central Intelligence agency has attached properties and five bank accounts of the accused and his other family members who are also on a long-term Indian visa and seized cash and goods worth Rs 3 crore. While the pan masala supplied clandestinely is valued at over Rs 40 crore, the GST duty evasion alone is estimated to be Rs 19 crore.
Preliminary investigation and interrogation of the accused revealed involvement of some local government authorities that helped in the clandestine supply of the banned pan masala, particularly during the outbreak of the Covid pandemic. The central agency is probing the role of the local authorities.
Indore is most affected by the Covid outbreak accounting for 42% of MP’s 8,288 coronavirus positive cases. Bhopal is the second most affected city having reported 1,572 cases so far. The accused had been regularly supplying pan masala and tobacco to these cities during the lockdown period in the past few months, besides other cities in Maharashtra.
The DGGI officials carried out searches at multiple locations in Indore on May 30 and 31 and unearthed five godowns and residences used by the accused for running the illicit operation. Gutka and tobacco worth Rs 2.25 crore were seized during the raids. Unaccounted cash of Rs 65 lakh was also seized from the residence of the accused.
“Gutka sale and consumption are banned across most Indian states. However, sale and distribution of pan masala & chewing tobacco had also been completely banned across India due to pandemic induced lockdown from 25th March, considering its risk in spreading Covid-19 infection,” a senior DGGI official said. More arrests are likely to follow.