Lucknow | Special Correspondent: A major corruption scandal has rocked Uttar Pradesh’s State GST Department, with nearly 50 officials under investigation for allegedly purchasing benami properties worth over ₹200 crore. A Special Investigation Team (SIT) has been formed, and strict disciplinary and criminal action is being planned against those found guilty.
The Case Unfolds
Investigators have recovered registration documents for land deals worth hundreds of crores in Mohanlalganj and Sultanpur Road areas near Lucknow. These documents reveal that several GST officials allegedly tried to legitimize their “black money” by investing it in benami land holdings. So far, 11 officials have been directly linked to these illicit properties. The case surfaced after an anonymous complaint reached the state government, prompting officials to comb through land records. According to sources, the accused officers used a well-known builder — reportedly a relative of a senior department officer — to purchase these properties discreetly.
How the Scheme Worked
Preliminary findings show that most of the accused officials were posted in high-revenue divisions like Ghaziabad, Lucknow, Kanpur, Varanasi, and Noida — often in “lucrative” field positions such as mobile squads or Special Investigation Branches (SIB). During the COVID-19 pandemic, transfers were largely frozen, allowing many officers to remain in the same post for three to five years. Experts believe this “Corona period” became a “Kuber era” for these officials, marked by extensive extortion from traders under the guise of inspections and raids.
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Assets Under Scrutiny
Documents show that 11 officers own plots, farmhouses, and commercial properties in prime areas like Mohanlalganj and Sultanpur Road. The probe has now widened to include about 50 officers, and investigators expect more names to emerge soon. A senior official, speaking on condition of anonymity, said:
“This isn’t just about land. It’s also linked to fraudulent GST returns and fake Input Tax Credit (ITC) claims. Several officials took bribes from traders to manipulate tax records, then funneled the money into benami real estate deals.”
The builder who mediated most of the transactions is believed to be closely related to a top GST officer. He allegedly arranged plots for the officials at undervalued rates, while the market prices were several times higher. Most of these deals occurred between 2020 and 2023.
Investigation and Action
Taking serious note of the matter, the Uttar Pradesh government has formed a Special Investigation Team (SIT), while the Income Tax Department’s Benami Property Cell has also begun a parallel probe. The same cell is already investigating over 240 officials and politicians for suspicious land acquisitions across the state. The GST Department has stated that anyone found guilty will face suspension and criminal prosecution. Uttar Pradesh has witnessed several such scandals in recent years — including a ₹21-crore GST fraud in Hapur that led to three suspensions, and fake firm rackets causing over ₹120 crore in losses to the exchequer. Given the scale and implications of this new case, panic has spread across the entire GST department, with many fearing a wider crackdown in the weeks to come.
