The Central Board of Indirect Taxes and Customs ( CBIC ) announced on Friday that it has suspended several Central GST ( CGST ) officials in Bengaluru following their arrest by the city police on extortion charges.
On September 11, Bengaluru’s City Crime Branch apprehended four CGST officials after a businessman filed a complaint at the Byappanahalli police station, Bengaluru East division, accusing them of kidnapping and extortion.
The arrested individuals include a superintendent, along with inspector and senior intelligence officer-level staff from the GST department.
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In a post on social media platform X, CBIC acknowledged media reports suggesting that some Bengaluru-based CGST officers were involved in alleged extortion activities that violated the law.
“The officers involved have been immediately suspended,” CBIC stated.
It added that the CBIC is in contact with the police authorities, who have obtained the remand of the arrested officials. “Further action will be determined based on the investigation’s outcome. CBIC maintains a zero-tolerance policy towards official misconduct, as part of its efforts to establish a transparent and trade-friendly tax administration,” it emphasised.
In a related development, the Enforcement Directorate ( ED ) has registered a money laundering case against the four arrested GST officials, accused of extorting ₹1.5 crore from the businessman by impersonating ED officers, according to sources on Wednesday.
Charges under the Prevention of Money Laundering Act ( PMLA ) have been filed against the accused, based on the First Information Report ( FIR ) lodged by Bengaluru’s City Crime Branch.
Sources revealed that the accused allegedly conducted a “fake” raid at the businessman’s residence, pretending to be ED officers, and extorted ₹1.5 crore by threatening him.
The ED plans to interrogate the accused once they are in custody and will investigate their assets for potential attachment under anti-money laundering laws.
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The businessman stated that around a week ago, four to five individuals forcibly took him around the city in two vehicles, demanded a large sum of money, and also took him to his office.
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