Rajasthan High Court Notes Delay in Trial, Grants Relief in Rs. 1,042 Crore Fake ITC Case
The Rajasthan High Court, Jaipur Bench, has granted bail to Dheeraj Singhal, accused in a multi-crore Goods and Services Tax (GST) fraud case.
The bench of Justice Shubha Mehta allowed the second bail application after nearly 17 months of pre-trial custody, citing prolonged detention and lack of substantive progress in the trial.
Singhal was arrested on February 8, 2024, and is accused of orchestrating a massive GST Input Tax Credit (ITC) fraud. According to the Directorate General of GST Intelligence (DGGI), he allegedly created 47 fake firms and issued bogus invoices worth Rs. 1,042 crore, fraudulently availing and passing on fake ITC to the tune of ₹322 crore.
The DGGI launched an investigation in 2023, tracing several shell companies linked to Singhal, including “Mrs. Dunk CLC Pvt. Ltd.” and “Mrs. DD Enterprises,” which were used to generate fake invoices without the actual movement of goods. Forensic analysis of Tally data and Excel sheets during raids revealed ITC misuse across 44 of these companies, all registered under the GST regime.
Singhal’s initial bail plea was dismissed on August 8, 2024. However, the Supreme Court later clarified that he could file a fresh application if circumstances changed or if the trial did not progress within three months. Despite this, no charges were framed nor significant steps taken in the prosecution even by April 2025, prompting Singhal’s legal team to file a second bail application.
The petitioner’s counsel contended that no government witness had been tampered with or influenced. All evidence against Singhal is documentary and digital in nature. The department has not proven any direct financial gain or bribe. Despite being under custody for nearly 17 months, no formal charges were framed.
The department opposed the bail, citing the scale of economic damage and the serious nature of the offence. It also highlighted that Rs. 190 crore worth of fake ITC had allegedly been availed and passed on.
Nonetheless, the Court noted that mere economic magnitude could not be the sole ground for continued detention, especially when investigation was largely complete, and trial was pending indefinitely. Justice Mehta emphasized the principle that undertrial prisoners must not remain incarcerated for an indefinite period.
The Court granted bail under the subject to various conditions namely a personal bond of Rs. 1 lakh; two sureties of ₹50,000 each; mandatory attendance on all hearing dates. Bail can be cancelled if Singhal is found involved in any other case or violates bail terms.
Case Details
Case Title: Dheeraj Singhal Versus Union Of India
Case No.: S.B. Criminal Miscellaneous II Bail Application No. 3613/2025
Date: 18/07/2025
Counsel For Applicant: Kapil Gupta with Tushar Panwar, Mukul Rao, Ankit Kumar, Vedant Gupta, Sushil Yadav, Chitransh Saxena
Counsel For Respondent: Kinshuk Jain, Sr. Standing Counsel for DGGI
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