Chandigarh/Ludhiana, Feb 12: Punjab Finance Minister Harpal Singh Cheema has reported a major breakthrough in the state’s fight against GST fraud following the arrest of a Ludhiana businessman and the dismissal of a department inspector. The twin actions are part of a broader campaign by the Bhagwant Mann administration to ensure fiscal integrity and hold public servants accountable for their conduct.
The arrest of Rohit Gupta, owner of M/s MAA STEEL, followed a detailed probe by the State Intelligence and Preventive Unit. Investigators found that the firm was part of a fake invoicing ring that caused a direct loss of over Rs 9 crore to the government. Cheema noted that the department found significant discrepancies between the firm’s books and the actual stock available on-site during their search operations.
“This fraudulent network managed to pass on Input Tax Credit exceeding Rs 9 crore to various beneficiaries, causing a direct and substantial loss to the state exchequer,” Cheema said. He further mentioned that the scope of the inquiry is widening as several other manufacturers are currently under the scanner for improperly claiming benefits.
Regarding internal discipline, the Minister announced the immediate dismissal of an Excise and Taxation Inspector. The official was removed from service following a legal process regarding a long-term unauthorized absence. Cheema said the government would not overlook any form of malfeasance or neglect of duty by department staff.
“We have already terminated four employees for similar misconduct, and disciplinary proceedings are currently underway against another Excise and Taxation Inspector and one Clerk for comparable acts,” the Minister said. He mentioned that the state remains focused on creating a level playing field for taxpayers while weeding out corruption.
The Finance Minister said that the government’s resolve to maintain a zero-tolerance policy toward tax evasion and internal indiscipline is absolute. He mentioned that the human resources and operational protocols of the department are being strictly monitored to prevent any further loss to the public treasury.
