You are here: Home » News-IANS » Business-Economy
Business Standard

Manpasand Beverages' top executives arrested for GST fraud

Business Finance

IANS  |  Vadodara (Gujarat) 

The entire top deck of Gujarat-based Manpasand Beverages including the company's Managing Director have been arrested on allegations of GST fraudt.

According to a BSE filing by the company, the Commissioner of Central GST and Customs carried out search and seizure proceedings at various premises of the company on May 23 and further inquiry was conducted on May 24 at the GST Bhavan office here.

"Abhishek Singh, Whole Time Director, Paresh Thakkar, Chief Financial Officer of the company and (Singh's brother) Harshvardhan Singh, are under judicial custody of authority from yesterday, i.e., May 24, 2019. The company is contesting these allegations in accordance with the due process of law," the company said in the filing.

"Considering the present status of the case, estimated impact on the company and amount involved is not identifiable till the outcome in the matter."

A CGST statement, released on Friday, stated that searches were conducted on various premises of the company on May 23, following which a racket of creating fake/dummy units for availing fraudulent credit and committing tax evasion of Rs 40 crore involving turnover of approximate Rs 300 crore had surfaced.

The investigations revealed a nationwide network of 30 dummy companies that were used by Manpasand Beverages for claiming illegal credit. The agencies are still ascertaining the exact beneficiaries of such dubious deals.

Manpasand Beverages is country's first listed pure-play beverage company having a market capitalisation of about Rs 1,200 crore. It manufactures fruit juices under the brand names X-Cite, Mango Sip, Siznal, Aprilla etc.

The company has seven operational manufacturing facilities in four states: three at Vadodara, two at Varanasi and one each in Dehradun and Ambala (Haryana).

This is not the first occasion when operations at Manpasand Beverages have raised eyebrows and questions were raised over its operations. In May 2018, the exit of auditors - Deloitte Haskins & Sells India - midway through an audit process raised suspicion about the opaque functioning of the organisation.

Reportedly the auditors left due to lack of transparency and their exit resulted in a crash of company's shares on bourses.

The company's Board of Directors is again scheduled to meet on May 28, to consider and approve its Audited Financial Results along with an audited report for the fourth quarter and year ended March 31, 2019.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, May 25 2019. 18:56 IST