The Enforcement Directorate (ED) is set to enter the bribery case involving Central Goods & Services Tax (CGST) officials in Jhansi, including deputy commissioner Prabha Bhandari, with a likely focus on the money laundering angle linked to the alleged corruption network.
Sources said the ED has begun preliminary groundwork to initiate action under the Prevention of Money Laundering Act (PMLA), following revelations by the Central Bureau of Investigation (CBI) about a well-organised extortion racket operating within the CGST office. The agency is expected to examine whether bribe money collected from traders was laundered through benami properties, shell entities or layered financial transactions.
As part of its initial assessment, the ED has started gathering details of movable and immovable assets belonging to the arrested deputy commissioner and other officials allegedly involved in the racket. The focus will be on identifying the “proceeds of crime” and tracing the money trail to establish how the illicit funds were generated, parked and potentially legitimised.
The ED has sought documents, seizure records and investigation reports from the CBI, the CGST department and the income tax department, sources said. These include materials recovered during searches, digital evidence and financial records that may help establish links between bribery proceeds and asset creation.
The CBI had earlier uncovered a systematic bribery and extortion mechanism in the CGST Jhansi office, leading to the arrest of deputy commissioner Prabha Bhandari and four others in connection with an alleged ₹1.5 crore bribery case on December 31, 2025. Investigators found that a fixed commission structure was at the core of the racket, with intermediaries allegedly receiving a 10% cut of the bribe amount for facilitating illegal settlements of tax evasion cases.
{{/usCountry}}The CBI had earlier uncovered a systematic bribery and extortion mechanism in the CGST Jhansi office, leading to the arrest of deputy commissioner Prabha Bhandari and four others in connection with an alleged ₹1.5 crore bribery case on December 31, 2025. Investigators found that a fixed commission structure was at the core of the racket, with intermediaries allegedly receiving a 10% cut of the bribe amount for facilitating illegal settlements of tax evasion cases.
{{/usCountry}}CBI sources said the accused officials allegedly operated a syndicate involving departmental insiders and select traders, under which tax cases were diluted, delayed or settled in exchange for hefty bribes. During interrogation, the arrested accused have reportedly named several more officers and employees, pointing to a wider network within the department.
If evidence of laundering of illicit funds is established, the ED may proceed with provisional attachment of properties and further custodial action against the accused.