A sprawling corruption case has rocked the Central GST department in Uttar Pradesh, as the Central Bureau of Investigation (CBI) arrested CGST Superintendent Nishan Singh Malli and tax advocate Amit Khandelwal for allegedly accepting a bribe of ₹1 lakh to settle a penalty notice. The arrests unearthed a trove of disproportionate assets, including 17 properties, lakhs in cash, and a luxury SUV. The crackdown sends ripples across the tax enforcement establishment.
The two were caught red-handed during a trap laid by the Ghaziabad unit of the CBI’s Anti-Corruption Branch, following a complaint by an Amroha-based businessman, Gaurav Sirohi, whose firm had been issued a hefty penalty notice for not filing GST returns amid the COVID-19 lockdown. The officer and lawyer allegedly demanded ₹4 lakh in bribe for “settling” the matter and negotiated to receive it in four installments.
The businessman approached the CBI after facing persistent pressure and threats from Khandelwal on behalf of Malli. Acting swiftly, the CBI recorded the statement, laid the trap, and arrested both individuals while accepting the first ₹1 lakh installment at the GST office in Amroha.
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17 Properties, Crores in Assets Unearthed
After the arrests, CBI teams conducted midnight raids at multiple locations in Amroha, Gajraula, Ghaziabad, and Moradabad — including the homes and offices of both accused. What followed was an eye-opening revelation.
CBI recovered documents for 17 properties linked to Nishan Singh Malli and his family:
- Three flats in Ghaziabad and Moradabad
- One commercial shop in Moradabad
- Twelve residential plots in Rampur and Gajraula
In addition, officials seized:
- ₹3 lakh in unaccounted cash
- A Hyundai Creta SUV registered in Malli’s name
- Confidential department files
- Hard drives and data backups from computers and laptops
A senior CBI officer noted that the scale of personal wealth is disproportionate to known income sources and may involve further laundering or benami transactions. Investigations are now likely to trigger asset valuation and income discrepancy audits by other agencies, such as the ED and the Income Tax Department.
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Judicial Custody, More Action Ahead
Following the arrest, both Malli and Khandelwal were produced before the Special CBI Court in Ghaziabad and remanded to judicial custody. The CBI has registered a formal FIR under the Prevention of Corruption Act and IPC Sections for criminal conspiracy and bribery.
Sources say that Malli was not only posted in Gajraula but also held additional charge of Amroha, giving him wide-ranging powers over GST-related enforcement in the region. His misuse of authority, in collaboration with Khandelwal, appears to be part of a larger pattern, with more businessmen expected to come forward.
The businessman in question had reportedly filed Income Tax Returns during the pandemic, but his GST license remained suspended, triggering a back-dated penalty. According to his statement, Malli claimed the penalty could rise to ₹40–50 lakh, using the threat as leverage to extort the bribe.
The CBI’s night-long searches further indicate that the accused may have orchestrated similar deals with other businessmen via the same lawyer. The seized documents are being verified for possible undeclared income, shell companies, and circular trading networks.
About the author – Prakriti Jha is a student at National Forensic Sciences University, Gandhinagar, currently pursuing B.Sc. LL.B (Hons.) with a keen interest in the intersection of law and data science. She is passionate about exploring how legal frameworks adapt to the evolving challenges of technology and justice.
