HomeGSTChhattisgarh High Court Grants Bail to Man Accused in Rs. 16.83 Crore...

Chhattisgarh High Court Grants Bail to Man Accused in Rs. 16.83 Crore Fake GST Invoice After 3 Months Of Custody

The Chhattisgarh High Court  has granted regular bail to Ajay Singh, who was arrested in April 2025 in connection with an alleged Rs. 16.83 crore fake GST invoice scam. 

The bench of Chief Justice Ramesh Sinha observed that a complaint has been filed against the applicant and further investigation is going on , moreover, the applicant is languishing in jail since 07.04.2025 and the charge-sheet/complaint has been filed, the conclusion of the trial is likely to take some time.

The applicant, Ajay Singh was arrested in Crime No. GST/314/2025/Part-II, registered at the Directorate General of GST Intelligence (DGGI), Zonal Unit, Raipur, for offences under Sections 16, 132(1)(c), and 132(1)(f) of the Central Goods and Services Tax (CGST) Act, 2017. The prosecution alleged that Singh used fake bills to fraudulently avail Input Tax Credit (ITC) amounting to ₹16,83,65,155, causing substantial loss to the government exchequer.

The applicant argued that he was innocent and had been falsely implicated. It was contended that under the GST law, the severity of punishment depends on the quantum of tax involved, which can only be determined after assessment. The defence also claimed that there was no direct evidence linking Singh to active participation in the alleged fraud and highlighted that he had been in custody since April 7, 2025, despite the filing of the complaint.

Opposing the bail plea, counsel for the DGGI maintained that since the complaint had been filed before the competent court, the applicant was not entitled to bail. The State argued that the investigation was still ongoing.

The court took into account the nature of the allegations, the fact that the charge sheet had already been filed, and that Singh had been in judicial custody for nearly four months. Noting that the trial’s conclusion would take time, the Chief Justice granted bail without commenting on the merits of the case.

Ajay Singh will be released upon furnishing a personal bond of ₹1,00,000 with one solvent surety to the satisfaction of the concerned court. The bail order will remain in force until the case is disposed of.

The matter continues to be under investigation, and the trial will determine Singh’s culpability in the alleged GST fraud.

Case Details

Case Title: Ajay Singh Versus UOI
Case No.: MCRC No. 5246 of 2025
Date: 31/07/2025
Counsel For Applicant:  Kashif Shakeel, Advocate
Counsel For Respondent: Maneesh Sharma, Advocate

Read More: Supreme Court Revokes Order Removing Justice Prashant Kumar from Criminal Bench After CJI’s Intervention

Mariya Paliwala
Mariya Paliwalahttps://www.jurishour.in/
Mariya is the Senior Editor at Juris Hour. She has 5+ years of experience on covering tax litigation stories from the Supreme Court, High Courts and various tribunals including CESTAT, ITAT, NCLAT, NCLT, etc. Mariya graduated from MLSU Law College, Udaipur (Raj.) with B.A.LL.B. and also holds an LL.M. She started as a freelance tax reporter in the leading online legal news companies like LiveLaw & Taxscan.
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