A Special Chief Judicial Magistrate (SCJM), Meerut, has remanded three accused, Rohit Gupta, Manoj Shah and Upesh to judicial custody till July 16, 2026, in a case alleging large-scale evasion of Health Security Cess (National Security Cess) under the BNSS Act, 2025 through the manufacture and sale of pan masala without registration.

According to the remand order passed on July 2, 2026, the proceedings arise out of Case No. 2707/2026 registered under Sections 18(1)(a), 18(1)(b), 18(1)(c), and 19(1)(a) of the BNSS Act, 2025. The prosecution was initiated by the Commissionerate, Gautam Budh Nagar.

The prosecution alleged that officials received confidential information regarding the operation of an illegal pan masala manufacturing unit at B-636, Awas Vikas Colony, Badaun.

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A search conducted at the premises reportedly led to the seizure of 12 fully automatic pan masala manufacturing machines, each capable of producing approximately 40 packets per minute; Raw materials used for manufacturing pan masala and gutkha; Packaging material and finished products, including branded packets such as Gagan, Shikhar, Gold Mohar, Dilwala, S-7, and Jeet-7.

Investigators claimed that the unit was manufacturing pan masala without obtaining the mandatory registration prescribed under the BNSS Act, 2025.

The department stated that, based on the production capacity of the seized machinery and the statutory method of assessment prescribed under the Health Security Cess Act, 2025, it calculated an alleged cess evasion of ₹218.40 crore.

The prosecution contended that the accused had been manufacturing and selling pan masala from February 2026 to June 2026 without depositing the applicable cess payable to the Central Government.

The authorities further alleged that the accused destroyed or removed evidence after learning about the inspection.

According to the remand application:

• Rohit Gupta was arrested on July 1, 2026 at 1:55 PM.
• Manoj Shah was arrested on July 1, 2026 at 2:15 PM.
• Upesh was arrested on July 1, 2026 at 2:30 PM.

The prosecution submitted that all statutory arrest formalities—including arrest memos, personal search memos, grounds of arrest, and panchnamas—were completed and copies supplied to the accused.

Counsel appearing for the accused opposed the remand and argued that no manufacturing machines were recovered from the residential premises of the accused. No goods were being manufactured at the alleged location. The department had not produced any documentary evidence linking the accused with the alleged manufacturing activity. The accused had been falsely implicated.

After examining the remand application, seizure records, statements of witnesses, and other documents placed before it, the court observed that the investigation materials prima facie indicated that the accused were involved in manufacturing and trading pan masala without registration, thereby attracting provisions of the BNSS Act, 2025.

The court further noted that the allegations involve an alleged ₹218.40 crore cess evasion, which constitutes a serious economic offence.

Without expressing any opinion on the merits of the case, the court found sufficient grounds at the remand stage to authorize judicial custody.

The Special Chief Judicial Magistrate directed that all three accused be remanded to judicial custody until July 16, 2026, and be lodged in the District Jail, Meerut.

The case remains under investigation, and the allegations against the accused are yet to be tested during trial. The remand order represents only a prima facie assessment for the purpose of custody and does not amount to a finding of guilt.

The Department was represented by SPP Lakshay Kumar Singh.

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