DGGI | Meerut Court Orders Judicial Custody in Massive Online Gaming GST Evasion Racket Busted [READ ORDER]

A Special Chief Judicial Magistrate (Economic Offences), Meerut, has ordered the judicial custody of an accused, Rajan Chandra Joshi and Ravi Singh arrested by officers of the Directorate General of GST Intelligence (DGGI) in connection with an alleged large-scale GST fraud involving fake firms, bogus invoices, and wrongful availment of input tax credit (ITC).

The Directorate General of GST Intelligence (DGGI), Zonal Unit Meerut, has booked a case relating to online money gaming and detected tax evasion amounting to Rs. 329 crore by three companies based in the Delhi–NCR region. A substantial volume of online gaming funds was routed into the bank accounts of these companies through various payment aggregators within a short period.

The DGGI has thus unearthed online gaming tax-evasion racket involving dummy companies, suppression of GST liabilities, and large-scale fund movements through payment gateways. The estimated tax evasion, presently pegged at over ₹329 crore, is expected to rise as the investigation progresses.

Based on this information, an investigation was initiated, leading to the arrest of Mr. Rajan Chandra Joshi and Shri Ravi Singh under the provisions of the CGST Act, 2017. The accused were produced before the Special Chief Judicial Magistrate (Economic Offences), Meerut, who ordered their judicial custody. Further investigation in the matter is ongoing.

The accused was produced before the court following his arrest under Sections 132(1)(a), 132(1)(f), and 132(1)(l) of the CGST Act, 2017, which deal with offences related to issuing invoices without supply of goods, fraudulent availing of ITC, and other forms of tax evasion.

Investigators stated that such activities were aimed at creating fraudulent ITC claims, allowing unlawful tax benefits and causing significant revenue loss to the government.

The arrest was made under the officer’s authority as provided in Section 69 of the CGST Act.

Lakhshay Kumar Singh, SPP assisted by Advocate Vandana Singh on behalf of the DGGI contended that the accused, along with associates, was involved in operating or facilitating several fictitious firms that existed only on paper. These firms were allegedly used to show fake purchases and sales, generating bogus invoices worth crores of rupees.

During the hearing, the court examined that statements recorded under Section 70 of the CGST Act, seizure memos and supporting documents, details retrieved from electronic devices, evidence suggesting creation and operation of shell firms

The court observed that there were prima facie grounds to believe the accused was involved in transactions meant to evade GST and defraud the tax authorities.

The order mentions that the alleged activities fall within the category of cognizable and non-bailable offences under the CGST Act when the tax amount involved exceeds Rs. 5 crore.

After reviewing the material presented, the court concluded that the arrest was legally valid and that judicial custody was necessary at this stage of the investigation. The accused has been remanded to Meerut District Jail.

The court also directed jail authorities to ensure compliance with all procedural requirements related to the detention.

The DGGI continues to investigate the network of alleged fake firms, possible co-accused, and the total quantum of evasion. More arrests may follow as the probe expands.

Case Details

Case Title: UOI Versus Ravi Singh

Date: 10/12/2025

Read More: Commissioner Had Valid Authority To Adjudicate Service Tax SCN: CESTAT