Ludhiana Based Businessman Arrested For Rs 9 Crore Scam

Feb12,2026 | Jagrati Lahar Bureau | Chandigarh/ludhiana

*Punjab Taxation Department cracks down on ₹9 crore GST fraud and internal indiscipline: Harpal Singh Cheema*

*Excise & Taxation Inspector Dismissed Over Prolonged Unauthorised Absence: Harpal Singh Cheema*

*Zero Tolerance Towards Tax Evasion & Indiscipline in Departments: Harpal Singh Cheema*

*Punjab Govt Expands Crackdown on GST Fraud, Ensures Accountability Within Ranks: Harpal Singh Cheema*

Punjab Finance, Excise and Taxation Minister Advocate Harpal Singh Cheema on Thursday announced decisive action on two fronts, underscoring the Punjab Government’s commitment to fiscal integrity and administrative accountability. The Punjab Minister informed that a Ludhiana-based businessman has been arrested in a ₹9 crore GST fraud case, while an Excise and Taxation Inspector has been dismissed from service due to prolonged unauthorised absence.

In a press communique issued here, Finance Minister Harpal Singh Cheema said that a major operation conducted by the State Intelligence and Preventive Unit, Ludhiana, led to the arrest of Rohit Gupta, Proprietor of M/s MAA STEEL, Ludhiana, by the Taxation Department. Elaborating on the case, he stated, “The Taxation department has unmasked a significant GST fraud where M/s MAA STEEL was found issuing fake invoices for HR/CR Coils and Strips without any actual supply of goods. This fraudulent network managed to pass on Input Tax Credit exceeding ₹9 crore to various beneficiaries, causing a direct and substantial loss to the state exchequer. During the search, the Taxation department teams also discovered glaring discrepancies between the physical stock available on the premises and the firm’s official book records.”

Finance Minister Harpal Singh Cheema further revealed that the investigation is widening in scope. “We are currently investigating several manufacturers of cycle parts and spare parts who are suspected of being part of this scam. These entities are under the scanner for improperly claiming export refunds or benefits through an inverted duty structure. Our government remains committed to vigorously combating tax evasion, protecting government revenue, and ensuring a level playing field for every compliant taxpayer in Punjab,” he said.

Turning to internal administrative discipline, Finance Minister Harpal Singh Cheema announced that the Punjab Government has dismissed an Excise and Taxation Inspector with immediate effect under the Punjab Civil Services (Punishment and Appeal) Rules, 1970, following due process in connection with the official’s prolonged unauthorised absence.

Emphasising the government’s firm stand on discipline, he said, “The Bhagwant Mann Government remains resolute that no form of indiscipline will be tolerated under any circumstances. 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.”

Reaffirming the AAP-led state government’s commitment to accountability, efficiency, and a disciplined work culture, Finance Minister Harpal Singh Cheema said these actions reflect that resolve. “We will maintain a zero-tolerance policy towards tax evasion and any malfeasance by public servants,” he added.

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