Following a raid by the Commissioner of Central GST and Customs, Gujarat-based Manpasand Beverages' managing director (MD) Abhishek Singh and chief financial officer (CFO) Paresh Thakkar have been arrested on allegations of GST fraud.
The beverage company which manufactures fruit juices under the brand names X-Cite, Mango Sip, Siznal, Aprilla, etc, said it is contesting the allegations.
"The Commissioner of Central GST and Customs has carried out search and seizure proceedings at various premises of the Company on May 23, 2019, and further inquiry was conducted on May 24, 2019 at GST Bhavan office of Vadodara. Mr. Abhishek Singh, Whole Time Director, Mr. Paresh Thakkar, Chief Financial Officer of the Company and Mr. Harshvardhan Singh are under judicial custody of Authority on yesterday, i.e., May 24, 2019," Manpasand Beverages said in a BSE filing.
It said that considering the present status of the case, estimated impact on the company and amount involved is not identifiable yet in the case.
IANS reported 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 ₹40 crore involving turnover of approximate ₹300 crore had surfaced.
On BSE, Manpasand Beverages' shares had closed at ₹110 on Friday. The company's board of directors is again scheduled to meet on Wednesday, to consider and approve its audited financial results along with an audited report for the fourth quarter and year ended March 31, 2019.