A storm is brewing in Uttar Pradesh’s business circles after several entrepreneurs in Muzaffarnagar leveled explosive allegations against a senior Sales Tax official, accusing him of extortion, intimidation, and abuse of power.
According to formal complaints submitted by multiple traders, the officer in question misused sensitive departmental data to coerce businessmen into paying hefty bribes. The allegations suggest that traders were summoned under the guise of departmental scrutiny or raids, only to be threatened with punitive action unless they complied with demands for illegal payments. In one case, an entrepreneur claimed the official initially demanded ₹50 lakh, and after resistance, lowered it to a one-time ₹10 lakh bribe along with a recurring “protection fee” of Rs. 50,000 per month.
Secret Hotel Meetings and Video Evidence
In a shocking revelation, complainants stated that these extortion attempts were carried out during clandestine meetings at a local hotel. The official was allegedly accompanied by a private individual with a known criminal background. During one of these meetings, traders claim to have secretly recorded the conversation, capturing audio and video proof of the bribe demands. These recordings were later submitted to departmental authorities, including the Deputy Commissioner.
Despite the serious nature of the accusations and the submission of direct evidence, no immediate disciplinary action was taken, fueling frustration among the victims and prompting an outcry from the business community.
IIA Slams ‘Systemic Extortion’
The Indian Industries Association (IIA) has condemned the incident in strong terms, describing it as a “systematic act of extortion by a government official exploiting state machinery for personal gain.” The association alleged that confidential information from tax records was used to identify and target business owners for blackmail.
The IIA also expressed outrage over the involvement of a known criminal accomplice in these operations and criticised authorities for their inaction. In response, the IIA has vowed to escalate the matter legally and politically, warning that it will not remain silent in the face of what it termed “organised corruption.” A message circulated on the IIA’s official WhatsApp group has urged all members facing similar threats to report them immediately to senior IIA leadership.
Protest Erupts After IIA President Summoned
The controversy intensified further when the GST department issued a notice summoning the IIA president to appear at its office. Viewing the move as a retaliatory tactic, the IIA denounced the summons as an act of intimidation aimed at silencing dissent.
In response, more than 50 prominent business leaders staged a protest demonstration in Muzaffarnagar. Notable industrialists including Ashok Agrawal, Pavan Goyal, Neeraj Kedia, and Sanjeev Mittal joined the rally, demanding accountability and protection for whistleblowers.
The IIA asserted that the case is not an isolated instance, but reflective of a broader pattern of power misuse within the tax enforcement system. “This is not merely a departmental issue—it’s an institutional crisis,” said one senior IIA member. “Instead of investigating the guilty, the system seems more focused on punishing those who speak out.”
Growing Demands for Reform
As outrage spreads through Uttar Pradesh’s trading hubs, calls are growing for a comprehensive inquiry into the matter. Business leaders, civic bodies, and legal experts have urged the state government and judiciary to step in and ensure transparency, accountability, and protection for those exposing corruption.
With video evidence submitted, high-profile voices engaged, and public protests mounting, this unfolding scandal is shaping up to be a critical test for the integrity of tax administration in the state. Whether the authorities will act decisively—or allow the controversy to be buried—remains to be seen.
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