Online Gaming GST Evasion Scam: Court Sends Accused to Judicial Custody in Rs. 329 Crore Tax Fraud Case:

Online Gaming GST Evasion Scam: Court Sends Accused to Judicial Custody in Rs. 329 Crore Tax Fraud Case The Directorate General of GST Intelligence (DGGI) presented two accused, Ravi Singh and Rajan Chandra Joshi, before the Special Court. The case involves alleged offences under Sections 132(1)(a), 132(1)(f), and 132(1)(i) of the Central Goods and Services Tax (CGST) Act, 2017. The Investigating Officers (I.O.s) requested a 14-day judicial remand for the accused. The accused, Ravi Singh, was alleged to be the controller and manager of the bank accounts for M/s Envirowheels Technology Pvt. Ltd. This company reportedly earned an income of Rs. 739 Crore through an online game, resulting in an evasion of GST amounting to Rs 206 Crore (calculated at 28%). The second accused, Rajan Chandra Joshi, was alleged to be the Director and controller of transactions for M/s Progressfin Payment Technology and M/s Spacehigh Tech Solution. These companies allegedly earned an income of Rs. 442 Crore, leading to an evasion of CGST amounting to Rs. 123 Crore. The defence counsel for the accused argued that the I.O.s failed to provide sufficient reasons for the arrest, and no arrest memo was prepared, requesting the rejection of the remand application on this basis. Main Issue: Whether the investigating officer's application for judicial remand of the accused, Ravi Singh and Rajan Chandra Joshi, in a case involving substantial tax evasion under the CGST Act, 2017, should be granted by the court. Court's Decision: The Court observed that bank statements had been collected by the I.O. and that the grounds for the arrest of the accused were provided in the arrest memos. The court noted that the accused allegedly evaded Rs. 206 Crore and Rs. 123 Crore in taxes, respectively, and that the total case is still under investigation, with other facts expected to emerge. Therefore, the Court held that the case is prima facie serious and relates to an economic offense. The Court found it just and reasonable to accept the remand application presented by the I.O. The judicial remand application was accepted in the interest of justice. Accused Ravi Singh and Rajan Chandra Joshi were ordered to be sent to the District Jail until December 22, 2025. To Read Full Judgment, Download PDF Given Below