Manpasand Beverages in the opening session on Monday cracked as much as 20% after 3 of the company's top executives were arrested by the GST department for producing fake company units and indulging in tax evasion.
As per the press released of the CGST, the MD of the Vadodara-based company Abhishek Singh, his brother as well as the company's CFO were arrested by the Central GST (CGST) and Customs, Vadodara-II.
The statement also said that authority engaged in carrying out multi-locational searches on the different Manpasand Beverages' premises on May 23.
"The searches unearthed a huge racket of creating fake/dummy units for availing fraudulent credit and committing tax evasion of Rs 40 crores and involving turnover of Rs 300 crore," the release said.
"The continuing investigation has unearthed a network of more than 30 fake units located in various parts of the country which were used for committing fraud by availing illegal credit. The investigation regarding the ultimate beneficiary of the fraud and web of shell companies is under progress," as per the statement.
At around 9:45 am, the stock of Manpasand Beverages was still trading lower by 20% at Rs. 88.