The CBIC said on Friday that it had suspended some CGST Officials in Bengaluru who were arrested by municipal police on alleged extortion allegations.

On September 11, the Bengaluru City Crime Branch detained four Central GST officials in connection with an abduction and extortion allegation submitted by a businessman at the Byappanahalli police station in Bengaluru East division.

A superintendent level officer, as well as GST inspector and senior intelligence officer rank personnel, were among those arrested.

In a post on X, the Central Board of Indirect Taxes and Customs (CBIC) stated that, according to media allegations, some CGST officials in Bengaluru had engaged in alleged extortion in contravention of the law.

“The implicated policemen have been suspended immediately,” it said.

It further stated that the CBIC is in contact with law enforcement officials who obtained these officers' remand after they were arrested.

“The outcome of the probe will determine the next steps. In its efforts to promote a transparent and trade-friendly tax administration, the CBIC has a zero-tolerance policy for official misbehavior,” the CBIC added.

In a related development, official sources reported on Wednesday that the Enforcement Directorate had also filed a money laundering case against four arrested Goods and Services Tax (GST) officers who were reportedly involved in extorting Rs 1.5 crore from the businessman here by posing as ED sleuths

Sections of the Prevention of Money Laundering Act (PMLA) have been invoked against the accused in light of the FIR lodged against them by the Bengaluru City Crime Branch, according to sources.

The four went to the businessman for a "fake" raid, pretending to be from the ED, and reportedly extorted Rs 1.5 crore from him by "threatening" him, agency sources claimed.

They will be questioned once the ED has taken custody of them, and the agency will seek for assets that can be attached under anti-money laundering laws, they said.

The businessman claimed that around a week ago, four to five people arrived to his residence and violently drove him around the city in two vehicles before taking him to his office, where they demanded a large sum of money.