Shares of Manpasand Beverages tanked 20 percent on Monday after the three top executives of the company were arrested by the Goods and Services Tax (GST) department. The stock was locked in a 20 percent lower circuit at Rs 88.10 per share on the National Stock Exchange. In last one year, the stock has slipped by 79 percent, and 20 percent in last one week.

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According to a press release by the CGST, Manpasand Beverages' managing director, Abhishek Singh, his brother Harshvardhan Singh and chief financial officer Paresh Thakkar were arrested by the Central GST (CGST) and Customs, Vadodara-II, according to a press release by the CGST.

“The searches unearthed a huge racket of creating fake/dummy units for availing fraudulent credit and committing tax evasion of Rs 40 crores and involving turnover of Rs 300 crore,” the release said.

The statement said that the authority carried out multi-locational searches on various premises of Manpasand Beverages on May 23.

On 24 May, 2019, the company in its press release announced the resignation of non-executive director Vishal Sood with immediate effect. This resignation is mainly due to search from GST department.

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First Published:May 27, 2019 9:51 AM IST