A Special Chief Judicial Magistrate (SCJM) Court in Meerut has remanded three accused – Nikhil Aggarwal, Anil Kumar, and Jitendra Kumar to judicial custody in connection with an alleged ₹123.76 crore GST fraud involving fake invoicing, clandestine manufacturing, and evasion of Health Security Cess and National Security Cess under the relevant provisions of the law. The order was passed in a remand application filed by the Directorate General of GST Intelligence (DGGI), Ghaziabad Zonal Unit.
According to the remand order, the accused are Nikhil Aggarwal, Anil Kumar, and Jitendra Kumar, who have been booked under Sections 18(1)(a), 18(1)(b), 18(1)(c), and 19(1)(a) of the Health Security and National Security Cess Act, 2025. The prosecution alleged that the accused caused a tax loss of approximately ₹123.76 crore by manufacturing and supplying pan masala without payment of the applicable cess while also issuing fake invoices.
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The DGGI informed the court that intelligence gathered by the department led to searches at multiple premises in Delhi and Ghaziabad on 17 July 2026. During the operation, officials allegedly discovered eight FFS (Form-Fill-Seal) packing machines, large quantities of raw materials, finished pan masala, packaging material, and other equipment used for manufacturing pan masala products.
Lakshay Kumar Singh, SPP on behalf of the department alleged that although the factory was ostensibly associated with another entity, manufacturing activities were actually being carried out under the control of the accused. Officials also claimed that attempts had been made to destroy or conceal evidence before the search, though significant records and materials were recovered during the operation.
The prosecution relied upon statements recorded from the accused during the investigation. The court noted that, in his statement, Nikhil Aggarwal allegedly acknowledged supervising and controlling the overall affairs of M/s Pan Samrat Group. The order also records statements indicating that the day-to-day operations of the group were managed by Nikhil Aggarwal along with co-accused Jitendra Lodhi and Anil Lodhi, which the prosecution relied upon to establish their respective roles in the alleged tax evasion scheme.
Counsel appearing for Nikhil Aggarwal opposed the remand application, arguing that the accused had no connection with the alleged offences and that there was no evidence showing his involvement in the manufacturing activity. It was further contended that no machinery had been recovered from his possession and that he was being implicated merely because he was acquainted with one of the co-accused.
The defence also questioned the legality of the arrest and sought rejection of the remand application.
After considering the remand application, statements of the accused, and the material placed on record, the court observed that the investigation disclosed a prima facie role of Nikhil Aggarwal in supervising and controlling the affairs of the business allegedly involved in the illegal manufacturing and tax evasion operation.
The court further noted that the arrest memo and related records indicated that the accused had been produced before the competent authority within the prescribed time and that there was no material at this stage to hold the arrest to be illegal.
Holding that the material placed by the DGGI disclosed a prima facie case involving serious economic offences under the Health Security and National Security Cess Act, the Special Chief Judicial Magistrate accepted the remand request and ordered that the accused be sent to judicial custody. The court directed that they be lodged in the District Jail, Meerut, in accordance with law, while further investigation in the case continues.
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