CBI Busts Rs 1.5 Crore Bribery Racket in Jhansi CGST Office
Deputy Commissioner and Four Others Arrested in Rs 70 Lakh Bribe Trap
Rs 1.60 Crore Cash, Gold and Property Papers Seized During Raids
By Our Legal Reporter
New Delhi: January 01, 2026:
The Central Bureau of Investigation (CBI) has uncovered a major bribery racket inside the Central Goods and Services Tax (CGST) office in Jhansi, Uttar Pradesh. In a dramatic operation, officials arrested a Deputy Commissioner, two Superintendents, an advocate, and a businessman for allegedly demanding and accepting huge bribes to favour private companies in tax evasion cases.
Also Read: Vodafone Idea’s AGR Relief: Government Freezes ₹87,695 Crore Dues, Eyes Investor Confidence
The case has shocked the public, highlighting how corruption within tax offices can undermine India’s fight against black money and tax fraud.
The Trap Operation
According to reports, the CBI received confidential information that senior CGST officials were demanding Rs 1.5 crore from a hardware businessman to settle a tax-related matter. Acting swiftly, the agency laid a trap.
- On December 31, 2025, two Superintendents, Anil Tiwari and Ajay Kumar Sharma, were caught red-handed while accepting Rs 70 lakh in cash.
- The bribe was allegedly being collected on behalf of Deputy Commissioner Prabha Bhandari, a 2016-batch IRS officer.
- Following the arrests, the CBI detained Bhandari, advocate Naresh Kumar Gupta, and businessman Raju Mangtani, owner of Jai Durga Hardware.
This coordinated operation exposed how officials were misusing their positions to demand illegal payments from businesses.
Raids and Recoveries
After the arrests, the CBI conducted raids at multiple locations linked to the accused. The searches led to the recovery of:
Also Read: Delhi High Court: Father’s Duty to Maintain Minor Children Non-Negotiable, Even If Mother Earns More
- Rs 1.60 crore in cash
- Gold ornaments
- Property documents
These recoveries suggest that the bribery racket was not a one-time incident but part of a larger network of corruption.
How the Racket Worked
Investigators revealed that the accused officials were allegedly running a systematic bribery syndicate:
- Businesses facing GST evasion inquiries were approached.
- Officials demanded huge sums in exchange for favourable outcomes.
- Payments were collected through middlemen, including lawyers and businessmen.
This case shows how corruption can directly impact India’s tax system, allowing companies to escape penalties while honest taxpayers bear the burden.
Public Reaction
The arrests have triggered widespread outrage. Citizens expressed anger that senior officials entrusted with safeguarding tax revenues were themselves involved in corruption.
Experts say such cases erode trust in institutions and discourage compliance among taxpayers.
CBI’s Role in Tackling Corruption
The CBI has been at the forefront of fighting corruption in India. In recent years, it has:
- Conducted trap operations against government officials.
- Investigated high-value scams across ministries and departments.
- Coordinated with other agencies like the Enforcement Directorate (ED) to track money laundering.
The Jhansi case is one of the biggest bribery crackdowns in recent months, showing the agency’s determination to clean up corruption in tax offices.
Broader Context: Corruption in Tax Administration
Corruption in tax offices is not new. Businesses often complain about harassment and demand for bribes during inspections.
Also Read: India Opens Insurance Sector to 100% FDI: New Rules Remove ‘Total Foreign Investment’ Concept
- GST system, introduced in 2017, was meant to simplify taxation and reduce corruption.
- However, loopholes and weak enforcement have allowed some officials to exploit businesses.
- Cases like Jhansi highlight the need for stronger monitoring and accountability.
Government Response
The government has promised strict action against corrupt officials. Sources say:
- The accused may face dismissal from service.
- The case will be prosecuted under Prevention of Corruption Act.
- More raids may follow in other CGST offices suspected of similar practices.
Impact on Businesses
For businesses, corruption in tax offices creates uncertainty and extra costs. Honest firms suffer while those willing to pay bribes escape scrutiny.
This undermines the ease of doing business in India and discourages foreign investment.
Conclusion
The Jhansi CGST bribery case is a wake-up call for India’s fight against corruption. The CBI’s swift action in arresting officials and recovering huge sums of cash shows that the system can work when agencies act decisively.
Also Read: Income Tax Refund Rules Explained: Interest on Delays and How to Track Your Refund
But the larger challenge remains ensuring that tax administration is transparent, accountable, and free from corruption. Only then can India build a fair and trustworthy financial system.
Keywords for Faster Searches
- CBI Jhansi bribery case
- CGST officials arrested
- Rs 70 lakh bribe trap
- Rs 1.60 crore cash seized
- Deputy Commissioner Prabha Bhandari
- GST corruption India
- CBI crackdown corruption 2025
- Jhansi tax office scandal
- Prevention of Corruption Act India
- CBI raids CGST office
Also Read: Punjab & Haryana High Court: Passport Deposit Not a Routine Bail Condition