Chhattisgarh’s GST enforcement unit has dismantled a major clandestine gutkha production network, arresting key operator Gurumukh Jumnani on charges of evading crores in unpaid taxes. The operation centered on the infamous “Sitar” brand, which had operated covert factories over the past four years, employing fake ledgers and exploiting workers to evade tax authorities.
Daily outputs of gutkha worth approximately ₹25 lakh flooded black markets, creating a significant revenue loss for the state. The bust plugs this fiscal gap and highlights the wider challenges posed by the underground economy that thrives despite tightened GST regulations on sin goods like tobacco products.
This crackdown not only sends a strong message to tax evaders but also exposes the harsh realities behind illegal tobacco manufacturing, from nomadic factory setups to worker exploitation.