CBI Arrests CGST Superintendent and Tax Advocate for ₹1 Lakh Bribery Scheme

Uttar Pradesh CGST Bribery Scandal: CBI Arrests Superintendent and Advocate in ₹4 Lakh Extortion Case

In a major embarrassment for the Central Goods and Services Tax (CGST) department in Uttar Pradesh, a Superintendent and a practicing tax advocate have been arrested by the Central Bureau of Investigation (CBI) for allegedly extorting a bribe from a local businessman. The arrests—made during a carefully planned trap—have sparked outrage over deep-rooted corruption and misuse of power within the tax machinery.

How the Case Unfolded

The case centres around a GST-registered, family-run business that had defaulted on its return filings—a statutory lapse that normally triggers financial penalties. Instead of initiating routine legal proceedings, the CGST Superintendent, Nishan Singh Malli, allegedly saw an opportunity to exploit the situation.

According to the CBI, Malli, with the help of tax advocate Amit Khandelwal—who represented the businessman—demanded a ₹4 lakh bribe to "settle" the matter. Rather than guiding his client through the legal route, Khandelwal reportedly joined hands with the official and pressured the complainant to make the payment.

Turning Point: From Pressure to Protest

The extortion attempt took a serious turn when the businessman, disillusioned by the betrayal of his legal counsel, approached the CBI with a formal complaint. The agency swiftly registered a case on June 9, 2025, and began surveillance.

A trap was laid, and both accused were caught red-handed while accepting the first tranche of the bribe—₹1 lakh in marked currency. The arrest took place in Amroha, with CBI officials documenting the exchange and taking both men into custody on the spot.

Raids, Seizures, and Asset Trail

Subsequent searches carried out by the CBI across locations linked to the accused—particularly in Amroha and Gajraula—revealed what officials described as “disproportionate assets.” Seizures included:

* 17 property papers registered in the names of Malli and close relatives, comprising multiple residential flats in Ghaziabad and Moradabad, a commercial shop in Moradabad, and a dozen plots spread across Rampur and Gajraula.

• A Hyundai Creta SUV registered to the Superintendent.
• ₹3 lakh in unaccounted cash, in addition to the ₹1 lakh bribe recovered during the trap.

The trail of assets points to a broader pattern of enrichment that could invite further investigation under the Prevention of Corruption Act.

What This Means for Taxpayers and Governance

The case has reignited concerns around accountability in GST enforcement, especially for small and mid-sized businesses vulnerable to bureaucratic overreach. The alleged role of a trusted tax professional in facilitating the bribe has added a layer of complexity, blurring the lines between legal representation and collusion.

As the investigation progresses, questions are being raised about internal checks within the CGST hierarchy and the disciplinary oversight of professionals licensed to represent taxpayers.

For now, the arrests send a clear signal that anti-corruption watchdogs are actively monitoring tax administration at the grassroots—and that even routine compliance matters can become the breeding ground for serious abuse of power.