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Crime
DGGI uncovers ₹185 crore tax evasion in Uttar Pradesh pan‑masala and tobacco racket
✍️ Hindustan Times
🗓 22 Aug 2026, 02:36 PM
👁 4
The Directorate General of Goods and Services Tax Intelligence (DGGI) raided a covert pan‑masala and tobacco operation in Uttar Pradesh, uncovering tax evasion worth about ₹185 crore.
Delhi‑based DGGI officials conducted a coordinated raid in Uttar Pradesh targeting a hidden network that manufactures and distributes pan‑masala and tobacco products. The operation, which spanned several locations, led to the seizure of large quantities of raw material, finished goods, and accounting records.
Preliminary investigations indicated that the syndicate had been operating outside the formal tax framework, deliberately evading Goods and Services Tax (GST) and other levies. Financial analysts estimate the amount of unaccounted revenue to be close to ₹185 crore, a figure that underscores the scale of the illicit trade.
Authorities have lodged cases against the individuals and entities involved, and further forensic audits are underway to recover the lost tax revenue. The bust is being presented as a major step in the government's crackdown on illegal tobacco and pan‑masala businesses that often exploit loopholes to avoid taxation.
The DGGI has reiterated its commitment to intensify surveillance of high‑risk sectors and to collaborate with state agencies to dismantle similar networks across the country.
Preliminary investigations indicated that the syndicate had been operating outside the formal tax framework, deliberately evading Goods and Services Tax (GST) and other levies. Financial analysts estimate the amount of unaccounted revenue to be close to ₹185 crore, a figure that underscores the scale of the illicit trade.
Authorities have lodged cases against the individuals and entities involved, and further forensic audits are underway to recover the lost tax revenue. The bust is being presented as a major step in the government's crackdown on illegal tobacco and pan‑masala businesses that often exploit loopholes to avoid taxation.
The DGGI has reiterated its commitment to intensify surveillance of high‑risk sectors and to collaborate with state agencies to dismantle similar networks across the country.