A bribery racket operating within the Central Goods and Services Tax office in Jhansi, Uttar Pradesh, was dismantled this week after investigators accused senior tax officials and private intermediaries of demanding large payments in exchange for favorable treatment in tax evasion cases.
The Central Bureau of Investigation said the case centered on an alleged demand of ₹1.5 crore to compromise GST probes and settlements involving private firms. Five people were arrested, including a deputy commissioner from the Indian Revenue Service, in what officials described as a coordinated corruption network spanning the tax department, legal professionals and business interests.
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A Trap Laid Inside the Tax Office
The investigation culminated on December 30, when CBI teams laid a trap that led to the arrest of two CGST superintendents, Ajay Sharma and Anil Kumar Tiwari, while they were allegedly accepting ₹70 lakh in cash. Investigators said the money was collected on behalf of Prabha Bhandari, a 2016-batch IRS officer serving as deputy commissioner in the Jhansi CGST office.
According to the agency, the bribe was sought to extend undue favors to firms facing scrutiny for GST evasion, including interference with ongoing investigations and settlement proceedings. The arrests were made following what officials described as a carefully monitored operation based on specific intelligence inputs.
The CBI also took into custody Naresh Kumar Gupta, a private advocate, and Rajendra Kumar Mangtani, the owner of Jai Ambey Plywood, alleging that they played intermediary roles in facilitating the transactions between officials and businesses.
Cash Seizures and Expanding Searches
Following the arrests, investigators carried out searches at multiple locations linked to the accused. The CBI said it recovered approximately ₹90 lakh in additional cash, along with property documents, jewellery and bullion. With the initial seizure, the total cash recovered in the case has reached about ₹1.60 crore.
Officials indicated that further searches are continuing, with a focus on tracing additional assets that may have been acquired through illicit means. The agency has not ruled out the possibility of further arrests or the attachment of properties as the investigation widens.
Those arrested were scheduled to be produced before a competent court after undergoing mandatory medical examinations, a standard procedure in corruption cases involving public servants.
Collusion Across Public and Private Lines
Investigators allege that the racket functioned through collusion between tax officials, legal intermediaries and private businesses, allowing firms accused of GST evasion to secure relief in exchange for cash payments. Such arrangements, officials say, undermine the integrity of tax enforcement by selectively weakening cases meant to ensure compliance under the GST regime.
Since the rollout of the Goods and Services Tax in 2017, the system has been promoted as a reform designed to simplify taxation and reduce discretion. Yet cases like this highlight how enforcement powers, particularly in high-value tax matters, remain vulnerable to abuse.
Anti-corruption experts note that the involvement of intermediaries such as advocates often helps insulate senior officials from direct transactions, complicating detection and accountability.
Broader Questions of Oversight and Trust
The Jhansi arrests come amid increased scrutiny of transparency and accountability in revenue departments across the country. The CBI has framed the crackdown as part of its zero-tolerance approach to corruption in public offices, particularly those handling high-stakes financial enforcement.
While the investigation is ongoing, the case has already drawn attention to persistent challenges in maintaining institutional integrity within tax administration, even as systems become more digitized and standardized.
For policymakers and enforcement agencies, the episode underscores the tension between reform on paper and practice on the ground, and the continuing need for vigilance in institutions entrusted with safeguarding public revenue.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
