Intelligence Report: DGGI Uncovers ₹250 Crore Areca Nut Tax Evasion Network in Meerut Zone, Four Individuals Detained

The Directorate General of GST Intelligence (DGGI) has successfully dismantled a sophisticated tax evasion syndicate operating in the Meerut zone, resulting in the detention of four key individuals. This operation exposes a meticulously orchestrated scheme designed to circumvent Goods and Services Tax (GST) obligations on areca nut, a primary ingredient in pan masala. Preliminary intelligence indicates the network allegedly facilitated the illicit movement of areca nut valued at approximately ₹5,000 crore to manufacturers across India. The modus operandi involved a deliberate misrepresentation of transactions; while sales were formally recorded as business-to-consumer on official documentation, the physical supply chain was covertly directed toward large-scale industrial clients. This dual-bookkeeping strategy was employed to evade the applicable tax liabilities. Further analysis reveals a complex logistical operation where raw areca nut was sourced from multiple states, consolidated through a nodal point in Delhi, and subsequently distributed without the requisite tax invoices and e-way bills. The disruption of this network underscores a significant enforcement action against commercial tax fraud, highlighting systemic vulnerabilities in the supply chain of fast-moving consumer goods. This case is now under detailed forensic examination to map the full extent of the financial fraud and identify potential collusion within the manufacturing sector.