Crime
DGGI Cracks Down on Rs 50 Crore Tax Fraud in Kanpur: Shell Companies Exposed, Factory Sealed
For the past two days, the Directorate General of GST Intelligence (DGGI) wing of the Central Goods and Services Tax (CGST) has been conducting raids on the SNK Pan Masala group. The agency sealed the company’s factory located in the Panki Industrial Area after discovering it locked and no one available to cooperate with the investigation. Despite extensive questioning, no information was provided, leading to the premises being sealed.
Calls were made to five phone numbers listed in the GST and CGST documents, but none were answered. In the presence of two witnesses, it was noted that the business owner and staff were not cooperating with the investigation team.
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Officials attempted to reach the concerned individuals via mobile phones but to no avail. After waiting for several hours, the officers posted a search warrant on the main gate of the factory and sealed it, stating that it would not be reopened without notifying the DGGI.
The factory is operated under Greenworth Enterprises Private Limited, a company that has been in existence for around two years. The factory and warehouse premises have been handed over to the police for custody. It is suspected that over ₹50 crores worth of tax evasion may have occurred, potentially through the creation of shell companies for illicit transactions. The exact figure will only be determined after a thorough assessment. Documents, soft files, and other data collected during the raids have been securely stored.
Though no official statement has been released regarding the raids, sources suggest that several significant and surprising discoveries were made at the homes, factories, and associates of the pan masala business owner.
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Evidence of bogus companies was uncovered, along with discrepancies in inventory records and concealment of accurate details regarding purchases and sales. According to DGGI sources, the firm had not been providing accurate records of its production, transportation, and sales to the GST department. The firm had been under the radar of the Directorate General of GST Intelligence for some time. Several documents and electronic devices were seized during the raid.
In addition to this, the DGGI’s CGST wing also raided two other factories. On Friday, October 18, starting at 7 a.m., eight DGGI teams raided 11 different establishments belonging to the SNK Pan Masala group across the city. Over 70 officers from Delhi, Lucknow, and Mumbai were involved in the operation.
The raids extended to the business owner’s two factories in Panki, as well as his residences in Swaroop Nagar and Ratan Lal Nagar. The authorities also raided two factories operated by the businessman’s brother in Panki, where pan masala wrappers were being manufactured. Additionally, a relative’s residence in Pandu Nagar was searched.
Authorities further targeted transporters involved in the movement of goods. The investigation continued late into Friday evening at a transporter’s warehouse in Transport Nagar and the residence of a supplier of betel nuts in Kidwai Nagar. Teams also arrived at the Panki Site 1 factory for inspection.