Mumbai, Jul 9 (IANS): In light of the investigation in the GST fraud case which has seen the arrest and resignation of the top Manpasand Beverages executive, auditors Mehra Goel and Co. have resigned on Tuesday, being the second auditor to resign as the company's auditor.

The company said in a regulatory filing that Mehra Goel and Co. resigned as the company's statutory auditor citing "recent developments, including action and investigation intiated by the Goods and Sevices Tax authorities in relation to Manpasand Beverages..."

"..and resignation of Directors and Company Secretary of Manpasand Bevrages Limited".

Manpasand scrips on the BSE closed 4.89 per cent lower at Rs 40.85 apiece.

A CGST statement, released in earlier in the year, stated that searches were conducted on various premises of the company on May 23, following which a racket of creating fake/dummy units for availing fraudulent credit and committing tax evasion of Rs 40 crore involving turnover of approximate Rs 300 crore had surfaced.

The investigations revealed a nationwide network of 30 dummy companies that were used by Manpasand Beverages for claiming illegal credit. The agencies are still ascertaining the exact beneficiaries of such dubious deals.

Manpasand Beverages is country's first listed pure-play beverage company having a market capitalisation of about Rs 1,200 crore. It manufactures fruit juices under the brand names X-Cite, Mango Sip, Siznal, Aprilla etc