The Jaipur Bench of the Rajasthan High Court on Friday refused to grant bail to two accused in a high-stakes GST evasion case linked to online money gaming, calling the allegations grave and economically damaging. Sitting through the hearing, it was clear the court was troubled not just by the numbers involved, but by how the money allegedly moved.
Justice Sameer Jain delivered the order, dismissing the bail pleas of Manoj Kumar and Jagdish, both currently lodged in Central Jail, Jaipur. The matter stems from an investigation by the Directorate General of GST Intelligence (DGGI).
Background
The case arises out of DGGI’s probe into alleged GST evasion through online gaming revenues. According to the prosecution, multiple private companies were onboarded with payment aggregators, and large sums were routed through UPI IDs and virtual payment addresses without payment of GST.
Initially, the alleged tax evasion was pegged at around ₹11 crore. However, as the investigation progressed and electronic records were examined, the figure swelled dramatically. In the final complaint filed on November 10, 2025, the alleged evasion was revised to nearly ₹95.77 crore.
The accused were arrested in September 2025. Their earlier bail applications were rejected by the sessions court, prompting them to approach the High Court under the Bharatiya Nagrik Suraksha Sanhita.
Court’s Observations
During the hearing, defence counsel argued that the applicants were merely facilitators, not actual suppliers, and that the offences under the CGST Act carry a maximum punishment of five years. It was also submitted that investigation was complete and continued custody served no purpose.
The court, however, was not persuaded. The bench noted that Section 132 of the CGST Act treats tax evasion above ₹5 crore as a cognizable and non-bailable offence. “The allegations disclose, on the face of the record, involvement in large-scale transactions and tax evasion substantially in excess of ₹5 crores,” the bench observed.
Justice Jain pointed to admissions recorded during investigation, seizure of electronic material, and the sheer scale of transactions. The order also refers to communications allegedly linked to foreign entities, raising concerns about evidence tampering and flight risk. “Fraud vitiates everything,” the court remarked, adding that concealment of transaction trails weighed heavily against the accused.
Decision
Taking into account the magnitude of the alleged evasion, the nature of online gaming transactions, and the risk to the investigation, the High Court concluded that this was not a fit case for bail. The bench held that the applicants had failed to make out any exceptional circumstances warranting their release at this stage.
Accordingly, both bail applications were dismissed, with the court clarifying that its observations were limited to the question of bail and would not affect the trial on merits.
Case Title: Manoj Kumar S/o Bhagwanaram vs State of Rajasthan & Connected Matter
Case No.: S.B. Criminal Miscellaneous Bail Application No. 13655/2025 (Connected with S.B. Criminal Misc. Bail Application No. 13782/2025)
Case Type: Criminal Miscellaneous Bail Application (GST Evasion / Economic Offence)
Decision Date: 06 December 2025
