New Delhi | A High Court has refused to grant bail to a senior Indian Revenue Service (IRS) officer accused in a high-profile bribery case linked to a Goods and Services Tax (GST) investigation, ruling that the prosecution has presented sufficient preliminary evidence suggesting her involvement in the alleged corruption.
The officer, who was serving as Deputy Commissioner of Central Goods and Services Tax (CGST) in Jhansi, was arrested in connection with a Central Bureau of Investigation (CBI) probe into an alleged demand for illegal payments from business entities under investigation for tax irregularities.
The case centers on an alleged bribery arrangement in which officials are accused of seeking a large payment to settle findings uncovered during tax searches.
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Alleged Bribe Demand After GST Searches
The case emerged after CGST authorities conducted search operations at the premises of two firms, where investigators reportedly discovered undeclared stock and financial documents indicating possible tax violations.
According to the prosecution, officials handling the matter allegedly demanded ₹1.5 crore from the firms in exchange for resolving the investigation without further enforcement action.
Investigators allege that the negotiations eventually resulted in the payment of ₹70 lakh, which was allegedly delivered through intermediaries connected to the officials involved in the probe.
The bribery allegations triggered a CBI investigation, leading to a trap operation designed to document the alleged transaction.
Trap Operation Leads to Arrest
During the operation, Ajay Sharma, a Superintendent with CGST, was apprehended while allegedly accepting the ₹70 lakh payment.
Authorities said the trap was part of a coordinated effort to verify allegations that tax officials were demanding bribes to influence the outcome of GST enforcement proceedings.
Following the arrest, investigators conducted what is known as a controlled call between Sharma and the accused IRS officer.
Prosecutors told the court that during this conversation the officer acknowledged the receipt of the bribe amount and discussed converting the money into gold, a detail that became a central piece of evidence in the case.
Recorded Conversation Cited as Key Evidence
The High Court noted that transcripts of the recorded call suggested that the officer had knowledge of the transaction and discussed handling the money received through the alleged bribe.
In its order denying bail, the court observed that the material submitted by the prosecution — including the recorded conversation and circumstances surrounding the trap operation — prima facie indicated the officer’s connection to the alleged demand and acceptance of illegal gratification.
While the court emphasized that the case would ultimately be decided during trial, it said the evidence presented at this stage was sufficient to justify continued custody.
Court Rejects Bail Plea Despite Personal Grounds
The officer had sought bail on several grounds, including the fact that she is a woman and currently pregnant.
However, the High Court ruled that such considerations do not automatically entitle an accused person to bail, particularly in cases involving serious allegations of corruption.
In its reasoning, the court referred to the Supreme Court’s judgment in Saumya Chaurasia v. Directorate of Enforcement, which clarified that bail decisions involving female accused must still be evaluated based on the gravity of the offense and the available evidence.
Applying that principle, the court concluded that the circumstances of the case did not justify granting bail at this stage.
While rejecting the application, the High Court directed the trial court to conduct the proceedings expeditiously, signaling the judiciary’s emphasis on ensuring a timely resolution of corruption cases involving public officials.
The case remains under investigation, with prosecutors continuing to examine financial records and other evidence linked to the alleged bribery arrangement.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
