CBI Busts Corruption Racket at Jaipur ITAT; ₹1 Crore Seized

Major Arrests as CBI Uncovers Bribery Network Inside ITAT

The Central Bureau of Investigation (CBI) has dismantled a corruption syndicate operating within the Income Tax Appellate Tribunal (ITAT), Jaipur. On November 25–26, 2025, the agency arrested three individuals: a judicial member of the tribunal, an advocate, and an appellant, following credible intelligence and coordinated raids. :contentReference[oaicite:2]{index=2}

During searches across Jaipur, Kota and other locations, CBI teams seized over ₹1 crore in cash, transaction records, property documents and other incriminating material, underscoring the organized nature of the bribery network. :contentReference[oaicite:3]{index=3}

How the Racket Operated: Bribes for Appeal Settlements

Investigators claim the syndicate promised to settle pending tax appeals in favor of appellants in exchange for bribes. According to sources, the racket involved collusion between judicial members, advocates and intermediaries to manipulate ITAT appeal outcomes in return for cash payments. :contentReference[oaicite:4]{index=4}

In the latest action, an advocate named Rajendra Sisodia was arrested on November 25 after allegedly accepting a bribe of ₹5.5 lakh through a hawala channel from an appellant whose appeal was pending before ITAT. On the following day, judicial member S. Seethalakshmi (also referred to as Sita Laxmi in some media reports) was arrested; CBI recovered ₹30 lakh cash from her official car. The third accused appellant, identified as Mujmmil, was also taken into custody. :contentReference[oaicite:8]{index=8}

Evidence and Syndicate Footprint: More Than Just Cash

Apart from cash, the CBI seized financial transaction records, property papers and other documents — painting a clear picture of a long-standing modus operandi. Authorities have described the recovered materials as proof of a "highly organised syndicate" that may have influenced many more cases than those currently identified. :contentReference[oaicite:9]{index=9}

The scale of seizures and the mix of institutional insiders and external intermediaries have raised serious concerns about systemic corruption within judicial-tax tribunals and have triggered calls for broader institutional review. :contentReference[oaicite:10]{index=10}

What It Means: Trust in Tribunal System Under Strain

The arrest of a sitting judicial member within ITAT is likely to shake public confidence in the appellate tax adjudication system. The fact that appeals could allegedly be settled in exchange for bribes undermines the core principle of judicial impartiality. Experts warn this scandal could have far-reaching implications for pending and past ITAT cases in Jaipur, beyond just the few currently under investigation. :contentReference[oaicite:11]{index=11}

Administrators and oversight bodies are expected to initiate a comprehensive audit of recent ITAT judgments to determine if other cases were influenced by similar corruption. Meanwhile, litigants whose appeals might have been improperly settled could demand review, opening the door to renewed scrutiny and legal challenges. :contentReference[oaicite:12]{index=12}

Shunyatax Global Perspective: Why Governance & Compliance Matter

At Shunyatax Global, we view this incident as a signal — not just of individual wrongdoing, but of systemic vulnerability where lack of transparency and weak oversight in quasi-judicial bodies can lead to large-scale economic fraud. Corporates, litigants and stakeholders must recognise such risks, and demand stricter governance, audit-ready documentation and clean institutional processes.

If institutions handling high-stakes financial or tax disputes fail to maintain process integrity, the impact can ripple across compliance, business risk, public finance and stakeholder trust. We recommend organisations engaged in high-value litigation or tax dealings to adopt robust internal checks and third-party compliance reviews to insulate themselves from fallout in scandal scenarios.

To stay ahead of such risks, or for expert compliance support — visit Shunyatax Global Services and consult with our advisory team.