MEERUT, Feb. 4 -- The Directorate General of GST Intelligence (DGGI) Meerut Zonal Unit busted a multi-state areca nut syndicate, arresting four men alleged to be at the centre of a GST evasion network that has so far cost the government Rs.250 crore. Officials say the total evasion could run into thousands of crores as the probe widens.

The syndicate allegedly funnelled areca nut worth nearly Rs.5,000 crore to pan masala manufacturers across India. To avoid paying tax, the group allegedly recorded sales as business-to-consumer transactions on paper, while the actual supply went to large-scale manufacturers. The raw areca nut was sourced from multiple states, routed through Delhi, and moved without proper tax documentation.

The four arre...