FIR Filed Against 5 GST Officials for Demanding 5 Crore Bribe from Ghaziabad Based Businessman
In a recent development, Ghaziabad police have registered an FIR against five officials from the Directorate General of Goods and Services Tax Intelligence (DGGI) for allegedly demanding a bribe of Rs. 5 crores from a local businessman. The officials, stationed at the DGGI Gurugram office, are facing charges under the Prevention of Corruption Act.
Details of the Incident
Arun Kumar Som, the director of SKS Electricals, claimed that his company’s office in Ghaziabad was raided on July 5, 2022, by the GST team on grounds of alleged GST rule violations. Shockingly, one of the directors was arrested without a warrant during the raid.
Som alleged that the GST officials demanded a bribe of Rs. 5 crores to “settle” the matter and threatened him with imprisonment if the payment was not made. Out of fear, Som claimed to have paid Rs. 2.35 crore over the course of a month. However, the officials continued to press for more money, stating that it would be distributed among higher-ups in the office.
Legal Actions Taken
Despite Som’s initial complaint, no FIR was registered by the police. Frustrated with the lack of action, Som approached the Police Commissionerate office to receive the FIR and when failed from there, he subsequently sought legal intervention under CrPC 156 (3). Only after a court order did the Ghaziabad police register an FIR under Section 7 of the Prevention of Corruption Act, 1988.
Chronology of Events
During the raid, the GST officials confiscated company computers and hard disks, arresting director Prem Singh without a warrant. Visits to the DGGI’s Gurugram office proved unhelpful as officials continued to demand money, allegedly discarding company documents. Som, unable to meet the initial demand, claimed he paid Rs. 50 lakhs in fear.
However, the ordeal did not end there, as the officials persisted, asking for an additional Rs. 4.5 crore. Som, desperate to avoid jail and public disgrace, paid another Rs. 1 crore in front of the DGGI Gurugram office on August 4, 2022, and Rs. 75 lakhs at NSC Club, Pragati Maidan in Delhi, on August 12, 2022.
Continued Threats
In January 2023, Som received a call from a new investigating officer who allegedly demanded an additional Rs. 50 lakhs. Despite Som providing Rs. 10 lakhs, the officer continued to threaten him, prompting Som to file a complaint with the police.
Conclusion
The Ghaziabad businessman’s harrowing experience highlights the alleged corruption within the DGGI and the challenges faced by individuals seeking justice. The ongoing investigation will shed light on the extent of corruption and whether the accused officials will face legal consequences.
To Access the GSTN Advisory No. 622 on Introduction of New Digital Modes of GST Payment CLICK HERE
Also Read
Vehicle Seizure Without Notice Infringes Transporter Rights – Allahabad HC Ruling of 9 January 2024