Guwahati — October 18, 2025: In the industrial outskirts of Guwahati, what appeared to be a legitimate steel business concealed a clandestine operation worth tens of crores. Acting on intelligence inputs, the Directorate General of GST Intelligence (DGGI), Guwahati Zonal Unit, unearthed a large-scale tax evasion racket allegedly orchestrated by 46-year-old Mukesh Agarwal, the promoter of M/s Balaji Concast and M/s Balaji Steel Rolling Mills.
Investigators say Agarwal’s operations extended well beyond the official records of his factories. The DGGI alleges that he had been manufacturing and supplying MS Ingots and TMT Bars without issuing GST invoices — an elaborate scheme that allowed him to skirt the tax net and claim unlawful input tax credits. Early estimates suggest the evasion amounted to nearly ₹83 crore, a staggering figure even by the standards of India’s tax enforcement history.
FCRF Launches CCLP Program to Train India’s Next Generation of Cyber Law Practitioners
A Scheme Built on Forged Records and Silent Shipments
Sources familiar with the investigation describe the operation as meticulous and layered. The DGGI’s findings suggest that Agarwal manipulated production records and delivery logs to disguise the actual volume of goods manufactured. By routing sales through shell firms and informal cash channels, he allegedly avoided mandatory documentation under Section 16 of the Central Goods and Services Tax (CGST) Act, 2017, which governs the issuance of valid invoices and availing of input tax credits.
A senior tax official involved in the probe said that field teams had conducted extensive searches at multiple industrial premises, uncovering forged accounts and undisclosed stockpiles of raw material. “The system was designed to appear compliant on paper,” the official explained, “but it effectively operated as a parallel, off-the-book economy.”
The evidence prompted Agarwal’s immediate arrest. His bail application was rejected twice, and he is now under 14 days of judicial custody while further investigations continue.
The Expanding Web of India’s GST Evasion Cases
The Guwahati case joins a growing list of investigations that highlight the vulnerabilities in India’s Goods and Services Tax (GST) regime, particularly in industries such as steel, textiles, and scrap trading. Since the GST’s rollout in 2017, enforcement agencies have faced a surge in fake invoicing and bogus input tax credit claims, often routed through ghost firms that vanish once flagged by authorities.
Experts say the ₹83-crore racket points to a larger problem — the persistence of informal business networks within the formal economy. “Even with digital invoices and e-way bills, collusion between suppliers, transporters, and brokers can conceal massive transactions,” said a former revenue intelligence officer. “These cases are not isolated; they expose systemic loopholes.”
The DGGI’s Guwahati unit, now collaborating with regional tax offices in other northeastern states, is reportedly tracking associated companies suspected of facilitating Agarwal’s transactions.
A Message to Industry — and the Market
The Directorate General of GST Intelligence has framed the arrest as a message of deterrence. In an official statement, a DGGI spokesperson said the agency remains committed to “maintaining the integrity of the GST framework and ensuring accountability among registered taxpayers.”
Tax officials emphasize that the operation was not merely punitive but preventive — intended to restore faith in the country’s indirect tax regime. “Such cases distort competition and harm compliant businesses,” one investigator said. “The goal is not only to punish, but to create an environment where tax transparency is seen as good business, not a burden.”
As the DGGI traces the financial trails of this ₹83-crore fraud, the case of Mukesh Agarwal stands as a telling reminder of how India’s economic modernization continues to grapple with old habits — where the promise of reform collides with the persistence of evasion.
