DGGI Ghaziabad | Meerut Court Sends Alleged Rs. 27.99 Crore GST Evasion Accused to Judicial Custody

The Court of the Special Chief Judicial Magistrate, Meerut, has remanded Rajiv Kumar to judicial custody till February 25, 2026, in connection with an alleged Goods and Services Tax (GST) evasion of approximately Rs. 27.99 crore. The case, titled Union of India vs. Rajiv Kumar, has been registered under Sections 132(1)(a) and 132(1)(i) of the Central Goods and Services Tax (CGST) Act, 2017. The complaint was filed by the Directorate General of GST Intelligence (DGGI), Ghaziabad. Allegations of Clandestine Supply Through Multiple Firms Special Public Procecutor Lakshay Kumar Singh contended that Rajiv Kumar was allegedly engaged in the clandestine supply of LED televisions through six firms operated by him. It was alleged that the accused undervalued goods and supplied them without issuing proper invoices, thereby evading GST. On October 15, 2025, the DGGI conducted simultaneous search operations at 18 locations, including manufacturing units, suppliers, dealers, transporters, and residential premises. During the search, officials reportedly seized unaccounted raw materials and finished goods, along with ₹58.50 lakh in cash. Several documents, including purchase slips, invoices, registers, and electronic devices, were also taken into custody. Some records were allegedly found to have been destroyed. The department claimed that despite issuance of summons, the accused initially did not cooperate or furnish the required documents. His statements were recorded on February 10 and 11, 2026, but officials alleged that his responses were evasive. Alleged Tax Evasion of Nearly Rs. 28 Crore The investigation reportedly revealed GST evasion amounting to ₹27,99,05,909. The department argued that since the alleged evasion exceeds ₹5 crore, the offence is cognizable and non-bailable under the CGST Act. Apprehending tampering with evidence and the possibility of absconding, authorities arrested Rajiv Kumar on February 11, 2026, under Section 69 of the CGST Act. The prosecution sought 14 days of judicial remand. Defence Arguments: Jurisdiction and Deposit of Rs. 10 Crore The defence opposed the remand application, contending that the grounds of arrest were not properly furnished and that the accused’s firms were based in Delhi, raising questions over territorial jurisdiction. It was also submitted that the accused had deposited ₹10 crore on October 16, 2025, demonstrating bona fide intent. Reliance was placed on judicial precedents, including a Supreme Court judgment reported in (2021) 19 SCC 547, to argue against custodial detention. Court’s Observations on Jurisdiction and Pending Liability After hearing both sides and examining the case diary and records, the court observed that Central Tax officers have all-India jurisdiction under Notification No. 14/2017-Central Tax dated July 1, 2017. The court noted that the DGGI Ghaziabad unit had received specific intelligence inputs and was conducting the investigation, and that territorial jurisdiction extended to Meerut. The court further observed that although ₹10 crore had been deposited by the accused, approximately ₹17 crore of alleged tax liability remained outstanding. The record indicated that multiple opportunities were given to produce documents related to suppliers, transporters, and transactions, but the same were not furnished. The court also noted that the accused had been served grounds of arrest and that the arrest memo bore his signature, in compliance with legal requirements, including the principles laid down by the Supreme Court. Offence Held Serious and Non-Bailable Emphasising the gravity of the alleged economic offence, the court observed that GST evasion of such magnitude constitutes a serious financial crime affecting public revenue. Given the ongoing investigation and apprehensions of evidence tampering, the court held that judicial custody was justified at this stage. Accordingly, the remand application was allowed, and Rajiv Kumar was sent to judicial custody till February 25, 2026. He is to be produced before the court on the next date through video conferencing. The matter remains under investigation, and further developments are expected as the DGGI continues its probe into the alleged network of firms and transactions. Click Here To Read Order

DGGI Ghaziabad | Meerut Court Sends Alleged Rs. 27.99 Crore GST Evasion Accused to Judicial Custody

Membership Required

Latest articles

Pending Regularisation Proceedings Must Be Respected: Supreme Court Quashes Demolition Direction

Pre-2017 Open University Qualifications Can’t Be Used to Deny Promotion: Supreme Court

Causal Link to Yamuna Floodplain Damage Was Not Established: Supreme Court Quashes NGT’s Environmental Compensation Order

Court Fee Issue in Property Dispute Can’t Be Decided at Threshold Without Evidence on Possession: Supreme Court

More like this

Pending Regularisation Proceedings Must Be Respected: Supreme Court Quashes Demolition Direction

Pre-2017 Open University Qualifications Can’t Be Used to Deny Promotion: Supreme Court

Causal Link to Yamuna Floodplain Damage Was Not Established: Supreme Court Quashes NGT’s Environmental Compensation Order

About us

Company

Categories