Bindal IT Raid
Four-day Income Tax raids across Muzaffarnagar, Bijnor, and Delhi end Saturday—₹171 Cr rebate fraud, fake purchases, and hidden profits rock UP’s paper & sugar giant.
Explosive IT survey uncovers ₹3 crore cash, ₹20 crore jewelry from Bindal Group’s homes and mills—biggest tax probe in UP industrial history.|by AI
Muzaffarnagar, Uttar Pradesh – March 22, 2026: In a seismic blow to Uttar Pradesh’s industrial powerhouse, the Income Tax Department’s Investigation Wing wrapped up a marathon four-day survey operation against Bindal Group on Saturday. What began as targeted searches on March 18 has exploded into one of the largest tax evasion exposures in recent memory, unearthing ₹3 crore in unaccounted cash, ₹20 crore worth of jewelry, over 50 property documents, and evidence of ₹50 crore+ in fictitious purchases. The raids spanned 30-35 premises across Muzaffarnagar, Bijnor, Delhi, and Ghaziabad, shaking the foundations of Bindal Papers Mills Ltd and its sprawling empire of paper, duplex boards, and sugar units.
This isn’t just a routine check—it’s a full-spectrum assault on alleged financial jugglery designed to siphon crores through fake invoices, cash concealment, and bogus tax rebates. As promoters watch their legacy unravel, the business community braces for ripple effects across UP’s agro-industrial belt.
Raid Timeline and Shocking Seizures: Day-by-Day Breakdown
The operation kicked off pre-dawn on March 18 with Ghaziabad and Meerut IT teams storming Gandhi Colony residences of Bindal promoters in Muzaffarnagar. Simultaneously, Bindal Papers Mills Ltd (BPML), Bindal Duplex Board Ltd, Agarwal Duplex Board Mills Ltd, Tehri Pulp & Paper Mills Ltd, Shakambhari Pulp & Paper Mills Ltd, and Bindal Industries Ltd faced search-and-seizure under Section 132. In Bijnor’s Changipur village, the group’s sugar mill—processing sugarcane bagasse for power and paper—became ground zero for evidence collection.
Day 1-2 (March 18-19): Teams camped at promoter homes, uncovering three steel almirahs stuffed with ₹3 crore cash—no ledgers, no explanations. 20 crore jewelry (gold, diamonds) tumbled out from lockers, valued at market rates. Over 50 immovable property documents surfaced, hinting at benami holdings.
Day 3 (March 20): Focus shifted to fake purchases. Investigators found invoices for ₹50 crore+ khoy (bagasse) and raw materials—purchases that never happened, inflated to reduce taxable income. Bijnor sugar unit records showed unvouchered cash sales, hiding real profits.
Day 4 (March 21-22): Statements under Section 132(4) from BPML accountants and power plant GM exposed the scam’s core: no separate books for paper production, power generation, and sugar sales. Only “trial balances” were submitted—industry slang for cooked books.
Pankaj Agarwal, MD of Bindals Duplex Ltd and UP Papermill Association president, confirmed the raids but stonewalled: “30-35 premises hit. We can’t comment—it’s under investigation.”
The ₹171 Crore Tax Rebate Fraud: How It Worked
At the heart lies Bindal’s ₹171.3 crore claim under Section 80IA for power generation from waste (bagasse cogeneration). This green energy incentive rewards industries converting agro-waste into electricity. But IT sleuths allege:
Unified Accounting Trick: Paper, power, and sugar units ran on single ledgers, blending profits to claim undue deductions.
Fictitious Purchases: ₹50 crore+ bogus khoy buys slashed paper mill costs artificially.
Cash Concealment: Sugar mill sales bypassed banks, profits parked as unaccounted cash/jewelry.
Benami Properties: 50+ documents link to undisclosed real estate, potentially worth hundreds of crores.
Sources reveal IT froze bank lockers and summoned directors. “This is textbook evasion—rebates meant for genuine green tech misused for tax holidays,” an officer noted anonymously.
Bindal Group Profile: From Paper Baron to Probe Spotlight
Established decades ago, Bindal Group dominates UP’s paper sector with Muzaffarnagar as HQ. Key assets:
Bindal Papers Mills Ltd: Core paper production.
Changipur Sugar Mill (Bijnor): Bagasse for power/paper.
Duplex Board Units: Agarwal, Tehri, Shakambhari—high-end packaging boards.
Turnover: Estimated ₹2000+ crore annually.
The group employs thousands, influencing UP’s sugar-paper economy. Promoters, including former Muzaffarnagar Nagar Palika chairman Pankaj Agarwal’s family, wield political clout. Yet, prior GST scams in Bijnor (₹2.24 crore ITC fraud, Jan 2026) raised red flags.
This raid mirrors national trends: IT’s 2026 MSME crackdown follows 2025 Saharanpur mill probes (₹100 crore evasion). Section 80 misuse is rampant—PIB notes similar jewelry/cash seizures nationwide.
Industry Ripple Effects: UP Paper-Sugar Sector Tremors
Immediate Impact:
Stock Dip: Associated firms’ shares tumbled 5-8% post-raid news.
Supply Chain Jitters: Bagasse suppliers halt deals fearing probes.
Labor Worry: 5000+ jobs at risk if penalties cripple operations.
Broader Context: UP’s 200+ paper mills contribute ₹10,000 crore to GDP, but evasion erodes ₹5000 crore taxes yearly. Sugar mills, generating 20% power from bagasse, claim 30% of 80IA benefits—now under scanner. “One big fish down, hundreds swim free,” quipped an industry veteran.
Government’s March 25 job fairs (Saharanpur, Jhansi, Kanpur; more in Ghaziabad, Meerut) gain urgency amid such scandals, promising contract hiring to stabilize employment.
Legal Repercussions and Next Steps: What’s Coming
IT’s post-survey phase escalates:
Ledger Scrutiny: Full audits of 5-year books.
Director Summons: Benami Act, PMLA probes loom.
Penalties: 200-300% of evaded tax + interest.
Asset Freeze: Cash/jewelry impounded; properties attached.
Bindal may appeal via ITAT, but evidence looks damning. Precedents: 2022 jewelry raids seized ₹5 crore cash nationwide. UP industries brace for more “surgical strikes.”
Public Angle: Taxpayers, heed this—genuine rebates need ironclad books. UP’s job fairs offer hope amid economic probes.
Conclusion: Wake-Up Call for Corporate India
Bindal’s fall from grace underscores IT’s zero-tolerance era. As Muzaffarnagar whispers of more revelations, UP’s industrialists audit books frantically. For citizens: Compliant businesses thrive; evaders crumble. Track updates via IT portal or helpline 1800-180-1961. The raid’s message? Transparency pays—evasion destroys.
Employment Note: Amid probes, UP Govt’s mega job fairs start March 25 across 20+ districts, simplifying contract recruitments for stability.
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