Supreme Court of India Grants Interim Bail in Rs. 706 Crore GST Fraud Case After Rajasthan High Court Refusal

The Supreme Court has granted interim bail to Manoj Vijay in a GST evasion case involving alleged tax fraud of Rs. 706 crore, after the Rajasthan High Court had earlier rejected his bail application.

Background of the Case

The case arises from proceedings initiated by the Directorate General of Goods and Services Tax Intelligence (DGGI), Jaipur Zonal Unit, under Section 132 of the Central Goods and Services Tax Act, 2017.

According to the prosecution, the accused allegedly operated a complex and technically structured fake invoicing mechanism in the name of a trading company, resulting in wrongful availment of input tax credit and alleged tax evasion of Rs. 706 crore.

The Rajasthan High Court, in its order dated January 8, 2026, rejected the bail application after considering:

• The gravity of the alleged economic offence.
• Pending GST-related cases against the accused.
• Alleged conduct during judicial custody.
• The magnitude of the alleged revenue loss.

The High Court observed that given the seriousness of the offence and prior cases under GST provisions, the accused was not entitled to discretionary bail at that stage.

Supreme Court’s Order

When the matter was taken up before the Supreme Court on February 27, 2026:

• Despite service of notice, no appearance was entered on behalf of the respondent (DGGI).
• The Court granted interim bail to the petitioner.
• Bail was made subject to terms and conditions to be imposed by the trial court.
• The matter has been directed to be re-listed after four weeks.
• Fresh notice has been ordered to be served.

The Supreme Court’s order does not enter into the merits of the case and grants only interim relief at this stage.

Click on the link given below to read the order.