New Delhi — The Central Bureau of Investigation (CBI) on Monday arrested a Central Goods and Services Tax (CGST) Superintendent and a tax lawyer in Uttar Pradesh for allegedly demanding and accepting a ₹1 lakh bribe, the first installment of an agreed ₹4 lakh, in exchange for waiving a GST penalty imposed on a private company.
The arrested officer, Nishan Singh Malli, was posted at Gajrola and held additional charge of Amroha, while the second accused, Amit Khandelwal, was representing the complainant in his capacity as a tax lawyer. Both were caught red-handed during a CBI trap operation, following a formal complaint from the businessman who refused to pay the demanded bribe.
GST Officer Demands Bribe to Waive Penalty
The case began when Superintendent Nishan Singh Malli issued a penalty notice to a private company over the non-filing of GST returns. According to CBI officials, instead of following legal procedures, Malli allegedly sought a ₹4 lakh bribe to drop the penalty.
Tax advocate Amit Khandelwal, who was officially representing the businessman, is accused of colluding with Malli and pressuring the client to fulfill the illegal demand. “The advocate, despite being in a fiduciary role, became part of the conspiracy to extract money from the complainant,” a senior CBI official said.
Malli and Khandelwal are alleged to have jointly orchestrated the bribery demand and were reportedly confident that the businessman would comply due to the gravity of the penalty issued.
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Businessman Approaches CBI, Sting Operation Ensues
Unwilling to participate in the illegal transaction, the businessman approached the CBI with a formal complaint. The agency swiftly verified the allegations and laid a trap operation, which culminated in the arrest of the two accused on Monday.
The CBI team apprehended both the CGST officer and the tax lawyer red-handed while they were accepting ₹1 lakh, believed to be the first installment of the total bribe. The arrests took place in Uttar Pradesh, in the vicinity of the CGST office, officials confirmed.
“The tax advocate was representing the complainant. However, he entered into a conspiracy with the superintendent, CGST, and pressured the complainant to deliver the bribe,” the CBI spokesperson said in an official statement.
Corruption in Focus: GST System Faces Scrutiny
The incident has once again put the spotlight on the integrity of India’s indirect tax administration. With the GST regime designed to streamline and simplify tax compliance, such instances of bribe-seeking by public officials undermine its foundational goals of transparency and efficiency.
The CBI is expected to produce the two arrested individuals before a competent court and may seek custodial remand for further interrogation. Investigators are also looking into whether similar bribe demands were made in other cases handled by the accused officer and advocate.
The Ministry of Finance and CBIC (Central Board of Indirect Taxes and Customs) have not yet issued a formal statement on the matter, but sources suggest that an internal probe may be initiated to assess administrative accountability and prevent recurrence.