CBI Arrests CGST Superintendent and Tax Advocate in Bribery Case

CBI Nabs CGST Officer and Tax Advocate in ₹4 Lakh Bribery Scandal

In a swift and telling operation on June 9, 2025, the Central Bureau of Investigation (CBI) arrested two individuals in Uttar Pradesh—one a senior government tax officer, the other a trusted tax consultant—on charges of soliciting a ₹4 lakh bribe to "settle" a GST penalty.

The accused include:

• Nishan Singh Malli, Superintendent with the Central Goods and Services Tax (CGST), posted at Gajraula and also holding charge of the CGST office in Amroha, and
• Amit Khandelwal, a practicing tax advocate in the region.

The arrests were made after both were allegedly caught red-handed accepting ₹1 lakh—the first tranche of the total demanded bribe.

A Tax Dispute Turned Sour

According to the CBI's First Information Report (FIR), the issue began when a penalty notice was served to a local family-run private firm for non-filing of GST returns. The firm’s owner, looking to resolve the matter, turned to his trusted tax advocate for guidance.

Instead of lawful representation, what allegedly followed was a betrayal on two fronts.

The CGST officer, Singh, and the very advocate meant to defend the business, Khandelwal, are accused of pressuring the complainant into coughing up ₹4 lakh to make the problem “disappear.” The advocate, it appears, acted not as a fiduciary but as a facilitator in the bribery attempt.

The businessman, refusing to give in, reported the matter to the CBI. Acting swiftly, the agency laid a trap—and caught the duo receiving the first ₹1 lakh payment.

Raids Uncover Suspicious Wealth

Following the arrests, the CBI launched search operations at multiple premises linked to the accused in Amroha and Gajraula. The findings paint a worrying picture of unexplained wealth:

• 17 property documents—flats, commercial spaces, and plots—registered under the names of Superintendent Singh and his close family, located in cities like Ghaziabad, Rampur, Moradabad, and Gajraula
• A Creta SUV registered in Singh’s name
• Over ₹3 lakh in unaccounted cash, aside from the seized bribe amount
• Several official files and case records, now under forensic review to trace possible broader misconduct or GST-related manipulation

Legal Proceedings and Investigations

The two were produced before a special CBI court in Ghaziabad, where they were remanded to judicial custody. The CBI is now digging deeper, focusing on:

• The ownership trail and funding sources of the recovered properties
• Determining whether Singh’s asset portfolio reflects a pattern of disproportionate wealth
• Tracing other potential collaborators in the CGST network or tax practice circles

More Than Just a Bribery Case

This case has hit a nerve in India’s indirect tax ecosystem, not just because of the corruption—but because of who was involved. The involvement of a licensed tax professional—a person duty-bound to protect the client’s interests—raises serious questions around ethics and integrity within the tax advisory profession.

It also spotlights a systemic problem that has plagued tax enforcement: the cozy collusion between insiders and intermediaries.

What This Means for Taxpayers and Practitioners

For regular taxpayers, this case is a reminder to document every interaction with the tax department, and not to shy away from reporting extortion attempts—however small. The businessman in this case refused to play along, and it made all the difference.

For tax professionals, especially advocates and consultants, this is a wake-up call. Clients trust them not just with compliance, but with their businesses and peace of mind. Misusing that trust isn’t just unethical—it invites criminal liability and lasting reputational damage.

For tax authorities, this case reiterates the need to strengthen internal vigilance, track asset accumulation, and ensure robust inter-agency coordination.