High Court Denies Bail in Rs. 48 Crore Fake GST Invoice Scam:

HC denies bail in fake GST racket, citing gravity of economic offence and public loss
Bail rejected in GST fraud case due to serious economic impact

High Court Denies Bail in Rs. 48 Crore Fake GST Invoice Scam
Hansraj Gurjar was arrested by the DGGI, Jaipur, for allegedly masterminding a massive GST scam. The authorities claim he was a key player in a syndicate that specialized in "paper transactions" creating fake firms and generating bogus invoices and e-way bills for marble and granite trades. According to the prosecution, no actual goods were ever moved, but the scheme allowed for the fraudulent claim and passing of Input Tax Credit (ITC) worth approximately Rs. 48.41 crore.
Gurjar’s legal team argued for his release, claiming he was a victim of false implication based on hearsay from co-accused. They pointed out that he had been in custody since August 2025, had no prior criminal record, and that since the investigation was wrapped up, there was no need to keep him behind bars. They essentially argued that the trial was moving too slowly and, under the new BNSS provisions, he deserved his freedom.
Main Issue: Should an accused person in a large-scale economic fraud case be granted bail based on the length of their time in custody, even when the financial impact on the public exchequer is severe?
HC Held: The Rajasthan High Court took a hard line, dismissing the bail plea. The Court ruled that economic offenses aren't just "regular" crimes, they are a distinct class of offense that damages the country’s financial health. The Judges found prima facie evidence suggesting that Gurjar was actively running shell companies and fabricating transport documents to fuel the conspiracy.
The Court sent a clear message: the sheer gravity of a Rs. 48 crore tax fraud outweighs the argument of "prolonged custody." It also clarified that while the BNSS provides a framework for bail, it doesn't give an absolute right to walk free, especially when there is a risk of influencing evidence or witnesses. Given the organized nature of the crime, the Court decided that keeping the petitioner in custody was necessary to protect the integrity of the legal process.
To Read Full Judgment, Download PDF Given Below
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Meetu Kumari
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Meetu Kumari is an Experienced Advocate and Content Writer with 4+ years of demonstrated history of working in the law practice industry. Skilled in Developing Content, Researching, and Drafting. Strong professional with a Bachelor of Science (B.Sc.) focused on Law from Gujarat National Law University.
Meetu Kumari is an Experienced Advocate and Content Writer with 4+ years of demonstrated history of working in the law practice industry. Skilled in Developing Content, Researching, and Drafting. Strong professional with a Bachelor of Science (B.Sc.) focused on Law from Gujarat National Law University.
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Jodhpur, Rajasthan, India
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