In a significant crackdown on corruption within the tax administration, the Central Bureau of Investigation (CBI) has arrested senior Central Goods and Services Tax (CGST) officials in Jhansi, Uttar Pradesh, for allegedly receiving a massive bribe. The agency caught the accused red-handed while accepting an installment of Rs 70 lakh and later seized assets worth approximately Rs 1.60 crore in total.
The Sting Operation and Arrests
The CBI's Anti-Corruption unit in Lucknow initiated action based on a tip-off regarding a businessman from Jhansi. The target was Raju Mangtani, one of the proprietors of Jai Durga Hardwares, who was allegedly negotiating with CGST officers to settle tax evasion cases against his firm and others.
On Tuesday, December 31, 2025, CBI teams followed Mangtani and witnessed the moment he handed over a bag containing cash to two CGST superintendents. The officers, identified as Anil Tiwari and Ajay Kumar Sharma, were immediately apprehended along with the businessman. During interrogation, they revealed that the bribe demand was initiated by IRS officer Prabha Bhandari, posted as Deputy Commissioner at the CGST office in Jhansi.
The Bribe Demand and Network
Investigations uncovered that the CGST officers had collectively demanded Rs 1.50 crore from the businessman to favorably settle the GST evasion cases. The Rs 70 lakh seized during the sting operation was merely the first installment of this illicit deal.
The CBI further unearthed the role of a mediator in the scandal. Tax advocate Naresh Kumar Gupta was identified as the person who allegedly facilitated the negotiation between the officials and the businessman. Gupta was subsequently arrested. Deputy Commissioner Prabha Bhandari, who was in Delhi at the time of the initial arrests, was directed to return to Jhansi and was also taken into custody on corruption charges.
Massive Cash and Asset Recovery
Following the arrests, the CBI conducted extensive raids at multiple locations beginning Tuesday. These searches yielded a substantial haul of illicit wealth. A CBI spokesperson confirmed that the raids led to the recovery of an additional Rs 90 lakh in cash, a significant quantity of jewellery and bullion, and several documents related to movable and immovable properties.
The total value of cash seized so far stands at Rs 1.60 crore. The property documents and jewellery are being assessed with the help of experts to determine their total worth. The CBI has confirmed that searches are ongoing and the investigation is continuing to uncover further details and possible accomplices.
Ongoing Investigation and Charges
The CBI had registered a formal case in December 2025 against the Deputy Commissioner, the two superintendents, the advocate, and owners of private companies. The charges pertain to criminal conspiracy and demanding undue advantage of Rs 1.5 crore for showing favor to private firms in GST evasion matters.
This case highlights serious allegations of corruption within the tax administration system, where officials are accused of exploiting their positions for personal gain. The CBI's action underscores a continued drive against graft in government departments. The agency has not ruled out more arrests or recoveries as the probe delves deeper into the financial trails and networks of the accused.
