A sessions court in Chandigarh has dismissed the bail applications of Navinder Singh Sahdev and Manish Kumar Aggarwal, arrested in an alleged Goods and Services Tax (GST) evasion case involving more than Rs 86 crore.
Case Background
The case was registered based on a complaint filed by the Directorate General of GST Intelligence (DGGI), Chandigarh. According to the agency, Sahdev, along with Aggarwal—who serves as the CEO of Central Nodal Entity—was the mastermind behind a large-scale, organized, and multi-layered scheme. This scheme involved the clandestine supply of online money gaming services, including real-money card games such as Teen Patti and Rummy, through a network of shell companies. The accused allegedly suppressed actual taxable receipts and evaded GST amounting to approximately Rs 86.74 crore.
Arrest and Arguments
The applicants were arrested on May 1, 2026, and have remained in custody since then. Counsel for the applicants argued that a false case had been foisted upon them. It was submitted that all relevant documents had already been seized or were in the possession of the investigating agency. The defense also alleged serious procedural infirmities and contended that there was no material in the documents supplied by the prosecution to show that the applicants had committed any offense.
On the other hand, the Senior Standing Counsel appearing for the DGGI, Chandigarh, argued that the applicants were the masterminds of a large-scale, organized, and multi-layered scheme and had evaded GST of Rs 86.74 crore. The DGGI further submitted that all companies in the network were found to be either non-existent or non-functional at their registered principal places of business.
Prosecution's Allegations
According to the prosecution, in his statement, Sahdev admitted that the directors of all the companies were dummy directors and that the actual management, banking operations, and compliance were handled entirely by him and Aggarwal. The agency also alleged that the applicants had direct links with overseas operatives in Hong Kong and that the creation of new entities indicated continuation of the alleged fraud even during the investigation.
Court's Observation
After hearing the arguments, the court observed that the allegations were grave and serious in nature. The court noted that records produced by the investigating agency indicated that huge amounts had been credited to the accounts of the companies involved. “Hence, keeping in view the gravity of the offences, the applicants are not entitled to the concession of regular bail,” the court held while dismissing the applications.
