Producer-director and management expert Arindam Chaudhuri was arrested on 21st August for eveasion of service tax. He had fraudulently claimed cenvat of service tax credit in the pre-GST regime. His colleague was also arrested alongwith him. A local court the same day sent the two to 14 days’ judicial custody. The total amount of money involved in the fraud case is more than Rs. 22.5 crore.
Arindam, who runs management college IIPM, and his colleague were produced before duty magistrate Jyoti Maheshwari in the Patiala House court. A probe is on about the properties held by Chaudhuri and his firm in Delhi and other cities of the country as well as Overseas.
In 2018, an indirect tax tribunal upheld the entire service tax demand against IIPM, saying that there was no scope to exclude academic courses conducted by IIPM from the levy of the tax demand. The total tax demand including interest and penalty could be over Rs. 200 crore.