# Illicit Pan Masala Packaging Unit Busted In Kanpur Under Guise Of Incense And Gulal Production

> Tax enforcement officials in Kanpur raided a rented facility in Ispat Nagar where an illegal pan masala packaging setup was operating under the pretext of making incense sticks and colors.

**Type:** article · **Category:** Uttar Pradesh · **Published:** 2026-10-10 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/uttar-pradesh/kanpur-men-agarabatti-aura-gulala-banane-ke-bahane-chala-raha-tha-nakali-pana-masala-ka-avaidha-karobara-chhapemari-men-mashinen-j-45889 · **Language:** English
**Tags:** Kanpur, Pan Masala, CGST, Commercial Tax Department, Uttar Pradesh Police, Raid

Enforcement authorities from the Special Investigation Branch (SIB), Range-D of the Commercial Tax Department have uncovered an illicit pan masala packaging operation in the Ispat Nagar area of Kanpur, Uttar Pradesh. The first floor of the commercial building had been rented under the official pretense of manufacturing gulal and incense sticks, but was instead being utilized to package counterfeit pan masala. During the surprise raid, officials discovered substantial quantities of packaging material bearing the labels of two reputed brands, raw ingredients, and a vertical pouch packing machine. The unit operator, identified as Rithik Agarwal, managed to flee the premises while the operation was underway.

## Senior Tax Officials Supervise Joint Enforcement Action
The enforcement raid in Ispat Nagar was spearheaded by senior officials, including Additional Commissioner Sanya Chhabra, Kumar Anand, and Joint Commissioner Sushil Gautam. The inspection team seized all on-site machinery, raw inputs, and branded packaging supplies discovered inside the facility. To determine the extent of tax evasion and pursue further statutory proceedings, the seized vertical pouch packaging machine and associated materials have been officially transferred to the Central Goods and Services Tax (CGST) department.

## Operator Faces Multiple Cases as Investigations Deepen
Departmental inquiries have revealed that the absconding operator, Rithik Agarwal, already has a criminal background related to similar illicit trade activities. A formal First Information Report (FIR) had previously been registered against him at the Bidhnoo police station. Regulatory agencies are now expanding the scope of their investigation to identify the supply chain, potential accomplices, and distribution routes connected to the illegal Ispat Nagar facility while active efforts continue to apprehend the runaway operator.

## Crackdown on Illicit Networks Across Kanpur
This enforcement action follows a string of targeted operations against unauthorized operations and smuggling networks in Kanpur. In an earlier raid within the Babupurwa police station limits, the Anti Narcotics Task Force (ANTF) uncovered a major consignment of narcotic syrup stashed inside a residential godown. That operation resulted in the seizure of 25,000 bottles of codeine-based cough syrup valued at an estimated 2 crore 95 lakh rupees. The ANTF arrested Mihir Kumar Thakur, a resident of Madhubani in Bihar, who allegedly procured the pharmaceutical consignments using counterfeit documentation and transport receipts under the name of a New Delhi firm before distributing them to Varanasi, Prayagraj, and neighboring districts.

## What this means for you
This crackdown curtails the distribution of counterfeit goods and protects consumers from substandard and unregulated products.

- **Across India:** Enforcement actions across the country will intensify against networks manufacturing counterfeit products using reputed brand names. Consumers will benefit from tighter quality control and stronger checks against tax evasion.
- **In Kanpur:** Local authorities will step up scrutiny of rented commercial and industrial premises to detect unauthorized manufacturing setups. Property owners will need to exercise greater caution and conduct strict tenant verifications.
- **For Consumers:** Buyers should remain cautious when purchasing packaged commodities and verify authentic packaging seals. Any suspected counterfeit goods can be reported to consumer protection and regulatory authorities.
- **For Businesses:** Commercial operators face heightened compliance checks and severe penalties for operating unregistered packaging units or evading taxes. Legitimate businesses will need to ensure complete documentation of their leased premises and manufacturing activities.

## Why this happened
The illegal setup was established by leasing a commercial property under the pretext of manufacturing harmless goods like incense sticks and gulal to avoid suspicion while producing counterfeit pan masala. The raid was initiated following specific intelligence received by tax enforcement authorities.

- **Tax Evasion and Counterfeit Production:** The Special Investigation Branch (SIB) acted on actionable intelligence regarding unauthorized packaging of two major commercial brands without paying regulatory duties.
- **Repeat Offender Involvement:** The facility operator, Rithik Agarwal, had prior criminal complaints against him at Bidhnoo police station, pointing to a persistent involvement in illicit commercial operations.
- **Regulatory Handover:** Upon seizing industrial packaging machinery and branded materials, the matter was transferred to the CGST department to probe broader tax fraud, supply chains, and trademark violations.

## Questions & Answers

### 1. Where was the raid conducted in Kanpur?
The raid was conducted on the first floor of a building located in the Ispat Nagar area of Kanpur, Uttar Pradesh.

### 2. What was the official stated purpose of the rented premises?
The premises were rented ostensibly for manufacturing incense sticks and gulal, but were secretly used for packaging pan masala.

### 3. What items were seized during the enforcement operation?
Officials seized raw ingredients, packaging materials bearing two reputed brand names, and a vertical pouch packing machine.

### 4. Which senior officials led the raid?
The operation was led by Additional Commissioners Sanya Chhabra and Kumar Anand, along with Joint Commissioner Sushil Gautam.

### 5. Who is the operator of the illegal factory and what is known about him?
The operator is Rithik Agarwal, who fled during the raid and has a prior FIR registered against him at Bidhnoo police station.

### 6. Which authority has taken custody of the seized goods?
The seized machinery and materials have been handed over to the Central Goods and Services Tax (CGST) department for further investigation.

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