Updated: January 2, 2026

In a dramatic anti-corruption operation, the Central Bureau of Investigation (CBI) has arrested Prabha Bhandari, a 2016 batch Indian Revenue Service (IRS) officer and deputy commissioner of Central GST in Jhansi, accusing her of masterminding a ₹1.5 crore bribe deal to bury a major tax evasion case. The investigation, according to officials, hinged on a single, carefully monitored phone call, which the agency says served as the “smoking gun” in the case.

The Bribe Case Unfolds

The case dates back to December 19, 2025, when Bhandari led a team to raid Jai Durga Hardware in Jhoken Bagh, Jhansi, over alleged tax irregularities. Officials indicated that the firm faced a potential tax liability of nearly ₹13 crore, and several sacks of business documents were seized during the raid.

Shortly afterward, investigators allege, Bhandari orchestrated a backdoor settlement, offering the firm a chance to pay ₹1.5 crore to settle the case. Negotiations were allegedly mediated through advocate Naresh Kumar Gupta, who liaised with the proprietor, Raju Mangtani.

The CBI began observing these dealings secretly, ensuring that they could gather direct evidence rather than relying solely on confessions.

How a Phone Call Exposed the Scheme

The operation took a decisive turn when the CBI caught GST superintendents Anil Tiwari and Ajay Kumar Sharmaaccepting the first instalment of ₹70 lakh in cash at the Jhansi CGST office. Both officers, reportedly, broke down under questioning and named Bhandari as the mastermind behind the deal.

However, the CBI sought more than verbal confessions. In a calculated move, one of the arrested superintendents was asked to call Bhandari on speakerphone in front of the investigators.

According to CBI sources, the call went as follows:

• Superintendent: “The party has delivered ₹70 lakh.”
• Bhandari: “Very good,” followed by detailed instructions to convert the cash into gold and hand it over to her.

The conversation was recorded, providing direct proof of Bhandari’s alleged involvement in orchestrating the bribe. At the time of the call, she was in Delhi, and a CBI team immediately moved to arrest her there. Simultaneously, another team conducted a nearly four-hour-long raid on her Jhansi residence, uncovering cash, gold, jewellery, and property documents, bolstering the agency’s case.

Arrests and Seizures

Along with Bhandari, the CBI has arrested:

• Anil Tiwari and Ajay Kumar Sharma, GST superintendents involved in collecting the bribe.
• Raju Mangtani, proprietor of Jai Durga Hardware.
• Advocate Naresh Kumar Gupta, allegedly involved in negotiating the bribe.

Further searches led to the recovery of an additional ₹90 lakh, bringing the total cash seized to ₹1.6 crore, along with gold, silver, and property papers. The case has been registered under the Prevention of Corruption Act, and investigators are working to uncover potential wider links and involvement of other officials.

Background on Prabha Bhandari

Prabha Bhandari, a 2016 batch IRS officer, serves as deputy commissioner in the Central GST office, Jhansi. Reports note that her husband is an Army colonel. The CBI operation, according to sources, was carried out with meticulous planning to ensure that the alleged conspiracy was exposed beyond doubt, with both direct evidence and corroborating material seized during raids.

Methodology of the Investigation

CBI officials have described the case as a “carefully orchestrated corruption racket”, noting the precision of the investigation. The sequence of events included:

1. Monitoring negotiations between the accused and the hardware firm.
2. Catching junior GST officials accepting bribe money.
3. Orchestrating the speakerphone call to Bhandari to gather direct, recorded proof.
4. Simultaneous raids on Bhandari’s Jhansi residence and arrest in Delhi.

The operation highlights how modern investigative techniques, combining surveillance, recorded evidence, and real-time monitoring, can bring high-ranking officials under scrutiny for corruption.

Legal Proceedings

Bhandari and the others were presented before the Lucknow Special CBI Court on Thursday for further proceedings. The investigation remains ongoing, with the CBI working to determine whether other officials in the CGST departmentwere involved or had knowledge of the bribe.

Significance

This case is significant because it demonstrates:

• The involvement of senior IRS officers in corruption within the Central GST framework.
• The use of direct evidence, such as recorded calls, in proving complicity.
• A well-coordinated CBI strategy, combining field arrests, raids, and surveillance.

The agency has emphasized that the investigation is still ongoing, with a view to uncover potential links beyond Jhansi, including whether any systemic corruption existed in handling large tax evasion cases in the region.