After four days of joint raids and unstopped search operations conducted by the Directorate General of GST Intelligence(DGGI) and Directorate of Revenue Intelligence(DRI), Paan Masala baron Sanjay Mata, a Pakistani national, has been sent to judicial custody till 17 June on the allegations of tax fraud. The departments conducting a probe in the matter estimated that the Mata family has done a tax fraud to the tunes of Rs 8 crores.
The Mata family runs a Paan Masala business (SS Enterprises) and it is accused that during the lockdown, they had been profiteering by sending Paan Masala consignments and selling unbilled goods in other states. During the raids, it has been revealed that the family has sold unbilled goods worth more than 30 crores during the lockdown.
Raids by DRI and DGGI
As per reports, the raids at the Mata family’s residence and other addresses revealed that the family is yet to get Indian citizenships and are retaining their Pakistani citizenship. The family has allegedly been indulged in the illegal businesses in Indore for years.
On May 30, the DGGI and DRI conducted raids at several locations belonging to the Mata family. The investigations reported a tax evasion worth 8 crores. Under the GST Act, the DGGI arrested Sanjay Mata and produced him in the court of special judge Vijendra Singh Rawat. He was sent to judicial remand till 17 June.
Documents are being scanned, evaded amount is expected to increase
Reportedly, several documents are still being scanned due to which the figure of tax evasion is expected to increase. The authorities also recovered cash worth Rs 67 lakhs from the Mata family residence.
In the court, the DGGI prosecutor argued that Sanjay and Sandeep are habitual criminals. They also have Pakistani citizenship. It is also alleged that there have been other allegations of tax fraud against the Mata brothers. While Sanjay Mata was arrested and has been sent to judicial custody till June 17, Sandeep Mata, the co-accused is still absconding.
Fake packets to cheat GST
As per reports, the Mata family, which runs several firms, has been selling Gutkha and Paan Masalas by making fake sachets and packs. Since the sale, and supply of Gutkha and Paan Masala has been banned during the lockdown, the family was allegedly profiteering by selling the fake packets at double or triple the original price.
The family’s businesses and warehouses were also raided in 2015.