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 was reserved on February 27, 2025, and subsequently issued on February 28 by Judge Sunil Kumar Meena.
The Directorate General of GST Intelligence (DGGI), Jaipur, had earlier uncovered an extensive tax evasion scheme, reportedly involving fraudulent transactions amounting to ₹700 crore. Raids were conducted at 15 locations across Rajasthan, including Bhilwara, Jaipur, Udaipur, and Sikar, leading to the seizure of incriminating financial records. On February 19, 2025, authorities arrested seven individuals, including Chaudhary, along with 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, with potential links in Haryana and Punjab, allegedly operating through a network of shell companies to facilitate the tax fraud.
Defense Arguments
During the bail hearing, Chaudhary’s legal counsel, Advocate Sumit Gehlot, contended that his client had been wrongfully implicated in the case. He argued that no incriminating evidence was found during searches conducted at Chaudhary’s office and residence. Furthermore, Gehlot emphasized that Chaudhary was neither a director, partner, nor beneficiary of any of the principal accused firms—Mahavir Trading, Rumjan Sarajuddin Shah, Manoj Vijay, Naveen Yadav, and Rajeev Yadav.
A key point of contention was an Excel sheet reportedly seized from the premises of the main accused, allegedly listing suspicious transactions related to Nirman Infra Pvt. Ltd., a company linked to Chaudhary. Gehlot challenged the validity of this evidence, asserting that the data was obtained from an anonymous source and lacked independent corroboration. He maintained that the prosecution’s case was built on speculative assumptions and unverified statements from co-accused individuals.
Prosecution’s Stand
Conversely, DGGI argued that the accused were part of an extensive tax evasion network, which used fraudulent companies to bypass GST regulations while supplying iron and steel products. The agency asserted that further investigation was required to trace the full extent of the financial irregularities and identify potential collaborators outside Rajasthan.
With bail now granted, the case is expected to proceed with further inquiries into the larger network involved in the alleged GST fraud.
Source: X News
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