The Gurugram Directorate General of GST Intelligence (DGGI) has arrested Popatlal Babulal Sanghvi, director of Payal Gold Private Limited, over allegations of orchestrating a Rs. 445.96 crore GST evasion racket. Investigators claim Sanghvi used large-scale unaccounted gold sales and systematic suppression of taxable transactions to dodge taxes.
The case, initiated and executed by the PADG, Gurugram Zonal Unit, was led under the supervision of Mr. Rajesh Pandey, Principal Director General (PDG).
Payal Gold Private Limited, a prominent player in Mumbai’s bullion trade, has never before faced GST-related charges of this scale. Officials allege the firm concealed significant volumes of transactions to evade liabilities under the Central Goods and Services Tax (CGST) Act, 2017.
Sanghvi was produced before a Mumbai court, which ordered 14 days of judicial custody. Investigators are now examining bank statements, stock ledgers, and digital evidence to uncover the full trail of illicit sales and determine the exact tax liability.
Sources suggest that the probe could widen to identify other bullion market entities potentially connected to the operation. If confirmed, this case would rank among the largest GST evasion incidents since the nationwide tax regime’s rollout in 2017, highlighting the government’s stepped-up efforts to curb financial crimes in the high-value gold sector.
Read More: GST Weekly Flashback: 3 To 9 August 2025
