Ludhiana Businessman Arrested in ₹9 Crore GST Scam
Excise & Taxation Inspector Dismissed for Prolonged Unauthorised Absence
Zero Tolerance for Tax Evasion and Departmental Indiscipline
Punjab Government Intensifies Crackdown on GST Fraud While Ensuring Accountability Within Its Ranks
Chandigarh, February 12
Punjab’s Finance, Excise and Taxation Minister, Advocate Harpal Cheema, announced strong action on two major fronts on Thursday, highlighting the state government’s firm commitment to protecting public revenue and maintaining administrative discipline.
The minister revealed that a Ludhiana-based businessman has been arrested in connection with a ₹9 crore GST fraud case. Additionally, an Excise and Taxation Inspector has been dismissed from service due to prolonged unauthorised absence.
In a press statement issued in Chandigarh, Finance Minister Harpal Singh Cheema detailed that the State Intelligence and Preventive Unit in Ludhiana conducted a major operation, leading to the arrest of Rohit Gupta, Proprietor of M/s MAA STEEL, Ludhiana, by the Taxation Department.
Explaining the fraud, he said: “The Taxation Department uncovered a significant GST scam in which M/s MAA STEEL issued fake invoices for HR/CR Coils and Strips without any actual supply of goods. This fraudulent setup enabled the wrongful passing of Input Tax Credit exceeding ₹9 crore to various beneficiaries, resulting in substantial revenue loss to the state exchequer. Searches at the premises also revealed major discrepancies between the physical stock and the firm’s recorded books.”
Cheema added that the investigation is expanding: “We are now probing several manufacturers of cycle parts and spare parts suspected of involvement in this network. These entities are under scrutiny for improperly claiming export refunds or benefits through inverted duty structures. The Punjab Government is fully committed to aggressively combating tax evasion, safeguarding state revenue, and ensuring a fair environment for all honest taxpayers.”
On the administrative front, the minister announced the immediate dismissal of an Excise and Taxation Inspector under the Punjab Civil Services (Punishment and Appeal) Rules, 1970, after following due process for prolonged unauthorised absence.
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Emphasizing the government’s strict stance on discipline, Cheema stated: “The Bhagwant Mann Government will not tolerate any indiscipline. We have already terminated four employees for similar misconduct, and disciplinary proceedings are ongoing against another Excise and Taxation Inspector and one Clerk for comparable violations.”
Reaffirming the AAP-led government’s dedication to accountability, efficiency, and a disciplined work culture, Finance Minister Harpal Singh Cheema concluded: “These steps clearly demonstrate our zero-tolerance policy toward tax evasion and any wrongdoing by public servants.”
