Intelligence-led action delivers ₹1,383 crore penalties, marks major shift in Punjab’s tax enforcement: Harpal Singh Cheema
Crackdown on Bogus Billing and Fraudulent Networks Intensifies: 8 FIRs, 15 Arrests Made: Harpal Singh Cheema
Major detections include ₹900 crore fake billing in gold transactions, ₹226 crore in coal transactions, and ₹423 crore bogus billing in Ludhiana & Mandi Gobindgarh: Harpal Singh Cheema
Investigations uncover ₹200 crore “Pet Pooja App” fraud: Harpal Singh Cheema
Strong ITC Control Measures Yield Results: ₹451.46 Crore Safeguarded: Harpal Singh Cheema
Finance Minister Harpal Singh Cheema reaffirms Bhagwant Mann Govt’s zero-tolerance policy against tax evasion, emphasising continued action to dismantle fraudulent networks & promote genuine business practices
CHANDIGARH, 6 April 2026:
Reaffirming the zero-tolerance policy against tax evasion under CM Bhagwant Singh Mann, Finance, Planning, Excise and Taxation Minister Harpal Singh Cheema on Monday announced that the Punjab Government has achieved record enforcement outcomes in the financial year 2025–26, marking a decisive shift towards intelligence-led action and robust revenue protection.
Detailing the performance, Minister Harpal Singh Cheema stated, “Driven by the focused and intelligence-led actions of the State Intelligence and Preventive Units, the State Taxation Department imposed massive penalties amounting to ₹1,383.11 crore during the year. Out of this imposed amount, a staggering ₹1,137.85 crore has already been recovered, reflecting a significant leap in enforcement efficiency and revenue realization for Punjab.”
Highlighting the backbone of this success, he added, “Inspection-based enforcement emerged as the primary driver, accounting for ₹1,215.95 crore in penalties and ₹972.15 crore in actual recoveries. Alongside this, road checking operations contributed a solid ₹165.71 crore. This performance marks a multi-fold improvement over FY 2024–25, where inspection enforcement resulted in ₹147.28 crore imposed and ₹41.53 crore recovered, and road checking recoveries stood at ₹157.14 crore. This sharp surge in FY 2025–26 underscores a transformational shift in the state’s capacity for detection, enforcement, and actual financial recovery.”
Underlining the crackdown on fraudulent networks, Minister Harpal Singh Cheema said, “The Taxation Department registered eight FIRs and carried out 15 arrests throughout the year. Two of the most prominent FIRs involved seven individuals and exposed fraudulent transactions worth ₹385 crore. These targeted operations uncovered tax evasion of ₹69.57 crore orchestrated by firms engaged in issuing invoices without the actual supply of goods.”
He added, “Additional FIRs were registered across Bathinda, Mandi Gobindgarh, Ludhiana, and Chandigarh to take decisive action against illegal transport of goods and deceptive billing networks. In one highly significant operation, a Ludhiana-based proprietor was arrested for passing fraudulent Input Tax Credit exceeding ₹9 crore.”
He further stated, “The department’s advanced intelligence network yielded several major detections, including uncovering ₹900 crore of fake billing in gold transactions in Ludhiana, ₹226 crore in illicit coal transactions across Mohali, Kharar, and Kotkapura, and ₹423 crore of bogus billing networks operating in Ludhiana and Mandi Gobindgarh. Furthermore, complex investigations uncovered a ₹200 crore fraud involving the ‘Pet Pooja App,’ highlighting the massive scale and sophisticated nature of modern evasion networks.”
On verification drives, the Minister stated, “Focused verification exercises led to the identification of 1,579 suspicious dealers. Following rigorous checks, 922 of these entities were found to be non-existent and their registrations were subsequently cancelled in close coordination with central authorities.”
Emphasising ITC safeguards, he noted, “Strong Input Tax Credit control measures resulted in ₹244.82 crore being actively blocked and ₹206.64 crore reversed. These proactive steps successfully safeguarded ₹451.46 crore in state funds, alongside an additional ₹19.08 crore realized through direct cash recovery.”
Highlighting intensified field enforcement, he added, “During a special drive conducted simultaneously at Mandi Gobindgarh and Ludhiana, a record 141 vehicles were detained in a single day. The department also strengthened enforcement at railway stations and major transit points, with particular scrutiny on high-risk sectors such as iron and steel, cement, auto parts, tobacco, and metals.”
Crediting institutional and technological strength, Minister Harpal Singh Cheema said, “The role of State Intelligence and Preventive Unit, Tax Intelligence Unit, and the ‘Bill Liao Inaam Pao’ Scheme has been pivotal. The overwhelming success of these enforcement measures has been powered by advanced data analytics, real-time e-way bill tracking, continuous intelligence inputs, and newly developed digital enforcement portals. These technological advancements have enabled swift and highly coordinated action on the ground.”
Reaffirming the Bhagwant Mann Government’s commitment, Minister Harpal Singh Cheema stated, “The performance of FY 2025–26 reflects a transformational shift towards intelligence-led enforcement, significantly strengthening compliance and revenue mobilization across Punjab. Such deterrent actions will continue with even greater intensity to permanently dismantle fraudulent networks, promote genuine business practices, protect honest taxpayers, and safeguard the state’s vital revenues.”
