CBI Arrests CGST Inspector in Bribery Case in Prayagraj

Bribery at Prayagraj CGST Office: CBI Catches Tax Inspector Red-Handed, Probe Widens

In a stark reminder of the persistent risks within tax administration, the Central Bureau of Investigation (CBI) has uncovered a bribery racket at the Prayagraj office of the Central GST Department. The incident has once again brought into focus the vulnerabilities that remain in processes involving physical inspection and discretion, despite wider digitisation of India’s tax systems.

The Complaint and CBI Trap

The case began when a local business owner approached the CBI with a troubling account. After submitting a GST registration application online, the entrepreneur was allegedly asked to pay a bribe by local officials to complete the mandatory physical verification step. The demand reportedly came from a CGST Superintendent, who indicated that without payment, the registration process would stall.

On May 3, 2025, the CBI acted on the complaint. A trap was set, and Inspector Hari Shankar Saroj was caught in the act, accepting a ₹10,000 bribe from the applicant. The money was allegedly intended to grease the wheels of the registration process. Saroj was arrested immediately and later produced before the Special Judge (Anti-Corruption) at the CBI Court in Lucknow, in proceedings conducted under the Prevention of Corruption Act.

Superintendent Still Absconding

The second official named in the case, Superintendent Anil Kumar Matlani, has not yet been apprehended. The CBI has intensified its search and is pursuing multiple leads. The case remains open, with further arrests and disclosures not ruled out.

Systemic Flaws in Focus

While India’s GST regime has been lauded for reducing human interface through automation and online filings, this case illustrates that certain pockets of discretion—particularly physical verifications—still expose taxpayers to coercion and malpractice. Officials note that physical inspections are meant to deter fraudulent registrations but must not become opportunities for rent-seeking.

Zero-Tolerance Messaging

In response, the CBI reiterated the government’s stated zero-tolerance stance toward corruption in tax and regulatory departments. “This case shows that the system will respond when citizens raise their voice,” a senior official said. The agency also urged businesses to promptly report any instances of bribery or coercion, reaffirming that no part of the GST registration process requires unofficial payments.

What Businesses Should Know

• Physical verification for GST registration is a legitimate step, but no bribes are ever required. All fees and procedural requirements are published transparently.
• If any official seeks illicit payment, businesses are encouraged to file complaints with the CBI or anti-corruption authorities.
• Firms should keep records and witnesses, where possible, to support their case in the event of coercion.

A Broader Lesson in Integrity

While the Prayagraj case raises concerns, it also demonstrates that robust enforcement mechanisms are in place and willing to act when called upon. For India's tax system to maintain credibility, both automation and accountability must go hand in hand. Incidents like this underline the importance of public vigilance, streamlined workflows, and eliminating discretion where avoidable.