The Central Goods and Services Tax (CGST) department conducted a significant raid on pan masala manufacturing units in Gurgaon and Mewat, Haryana, uncovering a tax evasion scheme totaling ₹10 crore. The operation led to the arrest of Vijay Kumar Agarwal, who allegedly orchestrated the illegal activities by appointing dummy directors for his companies. The CGST estimates that over ₹8 crore in central excise duty was evaded during a two-month period from February to March 2026. During the raid, officials seized multiple unregistered machines and a large quantity of raw materials and finished goods. The investigation revealed that the companies operated without proper registration and maintained no statutory records, violating legal provisions. The CGST is now pursuing recovery of the tax dues and penalties while continuing to investigate the full scope of the operation and identify other individuals involved. This action is part of a larger effort to combat tax leakage in the pan masala and tobacco sectors, which are known for high revenue risks.