Chhattisgarh GST Department Raids Illegal Gutkha Factory at 3 AM
Massive overnight raid at illegal gutkha manufacturing unit; statewide GST enforcement drive intensifies
The Chhattisgarh State GST Department uncovered a clandestine gutkha manufacturing operation running under the cover of darkness in the Durg-Rajnandgaon region at 3 AM.
Acting on specific intelligence inputs, a team of GST officers conducted a late-night raid at a factory producing Sitar brand gutkha, seizing a significant quantity of gutkha-making raw materials, machines, and packaging materials.
The illegal unit, reportedly located near Joratarai along Jalbandha Road and in the Ganiyari area near Anjora, had been operating secretly from 8 PM to 8 AM. Workers, many of whom had been brought in from Madhya Pradesh, were made to work under dim lighting conditions to avoid detection. According to department sources, the factory owner deliberately ran the operation at night to evade tax authorities and dodge GST liabilities.
The GST enforcement team launched the raid around 3 AM and found the premises actively engaged in the production of gutkha. Large stocks of wrappers branded “Sitar,” along with gutkha ingredients and machinery, were confiscated. Investigations are ongoing at multiple sites linked to the operation.
Statewide Crackdown Across Sectors
The gutkha factory raid forms part of a broader crackdown launched by the Chhattisgarh GST Department in recent days, targeting tax evasion across various sectors. Previously, action had been taken against textile and furniture businesses. On Wednesday, the focus shifted to the footwear sector, with coordinated raids carried out across six districts — Raipur, Durg, Raigarh, Jagdalpur, Bilaspur, and Korba.
Seventeen dealers came under scrutiny during the simultaneous operations, resulting in the recovery of approximately ₹2.5 crore in unpaid GST. The enforcement actions were prompted by inputs from the intelligence wing, which flagged consistent non-compliance by footwear traders.
In Raipur, a GST team conducted a separate raid on the premises of Saffron Corporate, which has business links to Bagadia Brothers Private Limited. One of the key individuals involved is reportedly a co-founder of the Aishwarya Group and has ties to the Nilay Group.
A String of Recent GST Raids
This latest enforcement surge follows several other high-profile GST raids across the country. Just recently, a ₹27 crore GST fraud was exposed in Aligarh, and the Directorate General of GST Intelligence (DGGI) arrested traders in Ranchi involved in an ₹11 crore fake Input Tax Credit (ITC) scam.
The Chhattisgarh GST Department’s recent actions signal a strong message to businesses across the state — evasion will not be tolerated, and violators will face swift and decisive action.
Mariya is the Senior Editor at JurisHour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
