The Special Economic Offence Court in Jaipur, Rajasthan, has granted bail to Ghasi Lal Chaudhary in connection with an alleged ₹700 crore Goods and Services Tax (GST) evasion case.
The order, reserved on February 27, 2025, was issued on February 28 by Judge Sunil Kumar Meena.
The Directorate General of GST Intelligence (DGGI), Jaipur, uncovered an extensive tax evasion scheme involving fraudulent transactions amounting to ₹700 crore. Raids were conducted at 15 locations across Rajasthan, including Bhilwara, Jaipur, Udaipur, and Sikar, resulting in the seizure of substantial financial records. On February 19, 2025, authorities arrested seven individuals, including Chaudhary, alongside Kesardev Sharma and scrap dealer Arun Jindal.
DGGI’s investigation revealed that approximately 13 lakh tons of iron and steel goods had been supplied without proper tax compliance, with an estimated market value of ₹4,000 crore. The agency suspects that the evasion network extends beyond Rajasthan, potentially involving operations in Haryana and Punjab through shell companies facilitating the tax fraud.
Legal Arguments and Court’s Decision
During the bail hearing, Chaudhary’s defense counsel, Advocate Sumit Gehlot, asserted that his client had been falsely implicated. He argued that no incriminating evidence was found during searches at Chaudhary’s office or residence.
Furthermore, he emphasized that Chaudhary held no directorial, partnership, or beneficiary role in any of the principal accused firms—Mahavir Trading, Rumjan Sarajuddin Shah, Manoj Vijay, Naveen Yadav, and Rajeev Yadav.
A critical aspect of the prosecution’s claim was an Excel sheet purportedly seized from the main accused’s premises, listing transactions related to Nirman Infra Pvt. Ltd., a company linked to Chaudhary. Gehlot challenged the validity of this evidence, stating that the data originated from an anonymous source and lacked corroboration. He contended that the prosecution’s case relied on speculative assumptions and unverified statements from co-accused individuals.
Prosecution’s Position and Implications
In contrast, DGGI maintained that the accused were integral to a sophisticated tax evasion network that exploited fraudulent entities to bypass GST regulations while distributing iron and steel products. The agency argued that a thorough investigation was necessary to trace the full extent of financial discrepancies and identify additional collaborators beyond Rajasthan.
With bail now granted, legal proceedings will continue, focusing on uncovering the broader network involved in the alleged GST fraud.
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