CBI Probe to GST Nexus in Maharashtra Municipality

NEW DELHI: The Central Bureau of Investigation (CBI) is set to probe allegations of a systemic corruption and tax-evasion network involving the CGST Thane Rural Division, multiple municipal bodies in the Thane region, and private contractors, after an internal vigilance examination found a prima facie case and the Chief Vigilance Officer (CVO) approved referral of the matter for criminal investigation. 

According to an official communication dated 27 December issued by the Directorate of Vigilance, Western Zonal Unit, Mumbai, which is the vigilance arm for Indirect Taxes and Customs in the Western region, the competent authority has referred the complaint to the CBI for investigation into alleged criminal conduct, taking the matter outside the scope of departmental proceedings. The complaint was filed by Dr. Arvind Dube, a resident of Kalyan, Mumbai and was supported by documentary material, field verification records, and responses obtained under the Right to Information Act. 

Officials familiar with the process said the allegations were first examined by a vigilance probe mechanism, which concluded that the material disclosed prima facie evidence warranting investigation by an independent central agency. The complaint names M/s Eagle Infra India Ltd, an Ulhasnagar-based contractor, as the principal private entity at the centre of the alleged network. It alleges that the company executed multiple municipal works across the jurisdictions of the Kalyan Dombivli Municipal Corporation (KDMC), Ulhasnagar Municipal Corporation, Ambernath Municipal Council, and Badlapur Municipal Council, and that municipal payments linked to these projects were used to facilitate wrongful input tax credit (ITC) claims through allegedly bogus or shell suppliers registered within the CGST Thane Rural Division. 

The representations further allege that a portion of these municipal payments was withdrawn in cash through intermediary entities, leading to the generation and circulation of unaccounted money. The complaint also names two CGST officials posted in the CGST Thane Rural Division: Mohit Sharma, Superintendent, and Shreyansh Surana, Assistant Commissioner. According to the allegations, they were involved in cash-based settlements during GST enforcement proceedings under the CGST Act and in the coordinated handling of cases linked to fraudulent ITC structures. These allegations remain unproven and are subject to investigation. 

Municipal officials are not individually named in the vigilance communication. However, the complaint institutionally implicates officers of KDMC, Ulhasnagar, Ambernath, and Badlapur civic bodies, alleging irregular approvals, certification of works without mandatory technical verification, and clearance of bills despite deviations from sanctioned plans. 

On the financial scale of the alleged wrongdoing, the complaint claims that cumulative irregularities linked to M/s Eagle Infra India Ltd across various projects between 2018 and 2025 exceed Rs 120 crore, based on FIRs, penalties, and documented deviations cited in the representations. It further alleges that around 10 to 15 percent of municipal payments were systematically siphoned off through GST-linked ITC manipulation and cash withdrawals, potentially resulting in revenue loss running into tens of crores of rupees, though no consolidated figure has been officially quantified. 

The material also cites specific transaction level allegations, including an alleged Rs 15 lakh cash payment and an alleged illegal demand of Rs 35 lakh during GST summons proceedings, presented as illustrative of the alleged modus operandi. Following the vigilance panel’s findings, the CVO approved referral of the matter to the CBI. The agency is now expected to register a case and examine the role of CGST officials, municipal officers, and associated private entities.