Businessmen Allege Rs 50 Lakh Extortion by GST Official in UP

Sales Tax Officer Caught Demanding Rs 50 Lakh Using Stolen Confidential Data

The420.in
3 Min Read

Several entrepreneurs in Muzaffarnagar have accused a senior Sales Tax official of misusing confidential business data to blackmail them. According to the complaints, the official summoned businessmen under the pretext of a departmental raid, threatened them with dire consequences, and then demanded a bribe of Rs 50 lakh. When one of the businessmen refused, they were pressured again after a second meeting, during which the official allegedly demanded a one-time Rs 10 lakh payment and a monthly “protection” fee of Rs 50,000.

Meeting in Hotel, Video Evidence Recorded

The accused official allegedly orchestrated meetings in a hotel with the help of a private individual known for criminal behaviour. Businessmen claim that they recorded the conversation, including the demand for illegal payments. These recordings were later submitted as evidence. When a complaint was filed with the Deputy Commissioner of the department, no immediate action was taken, leading to widespread frustration.

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The Indian Industries Association (IIA) strongly condemned the incident, calling it “a systematic act of extortion” and demanding strict legal action. The IIA claimed the accused officer used inside departmental data to threaten multiple traders. It also alleged that the officer worked with an associate to create a climate of fear and carried out repeated acts of coercion. Despite the identification of the private accomplice, authorities failed to take immediate disciplinary measures.

The IIA has pledged to escalate the matter, warning that the organisation would not tolerate such criminal misuse of government power. It also issued a warning message on its official WhatsApp group, urging any member facing similar threats to report them directly to top IIA officials.

Summons, Protest, and Political Fallout

The controversy deepened when a GST officer issued a notice summoning the IIA president to the GST office. The IIA denounced the move as intimidation and staged a massive protest, with over 50 business leaders joining the demonstration. Prominent IIA figures including Ashok Agrawal, Pavan Goyal, Neeraj Kedia, Sanjeev Mittal, and others participated.

The IIA maintained that this was not an isolated incident but part of a broader pattern of institutionalised extortion. The association accused GST officials of misusing power to silence critics and labelled the summons a “tactic to create fear and suppress whistleblowers.”

This episode has sparked outrage among the business community in Uttar Pradesh. With recordings submitted and senior leaders involved, the case has snowballed into a serious test of accountability in tax enforcement. As investigations continue, the demand for transparency, departmental reform, and judicial oversight grows louder.

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