CBI Busts ₹1 Crore Bribery Racket in Jaipur ITAT: Judicial Member, Advocate Among Arrested
Income Tax Appellate Tribunal under scanner as CBI uncovers organised network of corruption
Raids in Jaipur, Kota reveal cash, hawala links, and systemic abuse of judicial powers
By Our Legal Reporter
New Delhi: November 27, 2025:
The Central Bureau of Investigation (CBI) has exposed a major bribery racket inside the Income Tax Appellate Tribunal (ITAT), Jaipur, shaking public trust in one of India’s most important quasi-judicial institutions. The investigation has led to the arrest of a judicial member, an advocate, an assistant registrar, and an appellant, all accused of manipulating tribunal orders in exchange for hefty bribes routed through cash and hawala channels.
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The Case Unfolds
On 25 November 2025, CBI registered a case against advocate Rajendra Sisodia, ITAT judicial member Dr. S. Seethalakshmi, an assistant registrar, and other unidentified individuals. According to investigators, the group operated as an organised syndicate, ensuring favourable outcomes for appellants in pending tax disputes.
The probe began when Sisodia was allegedly caught red-handed accepting ₹5.5 lakh from an appellant. The money was reportedly arranged through a hawala network. Following this, CBI arrested Dr. Seethalakshmi, from whose official car ₹30 lakh in cash was recovered. Subsequent raids across Jaipur, Kota, and other locations uncovered over ₹1 crore in cash, property records, and documents pointing to a structured corruption network.
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How the Racket Worked
The syndicate allegedly functioned by:
- Identifying appellants with pending tax disputes.
- Offering favourable orders in exchange for bribes.
- Routing payments through hawala channels to avoid detection.
- Splitting proceeds among insiders, including tribunal officials and intermediaries.
This systematic abuse of judicial powers highlights the vulnerability of quasi-judicial bodies where decisions directly impact taxpayers and government revenue.
Arrests and Recoveries
- Advocate Rajendra Sisodia: First arrested while receiving ₹5.5 lakh.
- Judicial Member Dr. S. Seethalakshmi: Arrested the next day; ₹30 lakh recovered from her car.
- Assistant Registrar: Taken into custody for facilitating the racket.
- Appellant: Arrested for paying bribes to secure favourable orders.
During raids, CBI seized ₹1 crore in cash, property documents, transaction records, and digital evidence. These recoveries suggest the racket was not isolated but part of a larger, organised corruption web.
Public Reaction and Institutional Impact
The revelations have sparked outrage among taxpayers, lawyers, and civil society. The ITAT, established to provide impartial resolution of tax disputes, now faces questions about its integrity.
Legal experts argue that corruption in appellate bodies undermines both taxpayer confidence and government revenue collection. If tribunal orders can be bought, the fairness of India’s tax system is compromised.
CBI’s Statement
In its official release, CBI described the case as an “organised syndicate” involving public servants and private individuals. The agency emphasised that the arrests were part of a larger effort to cleanse judicial and quasi-judicial institutions of corruption.
CBI also confirmed that investigations are ongoing, with more arrests likely as evidence is analysed. The agency is examining hawala transactions, property records, and digital communications to trace the full extent of the racket.
Wider Implications
This case is not just about Jaipur. It raises broader concerns:
- Systemic corruption risks in quasi-judicial bodies.
- Weak monitoring mechanisms that allow bribery networks to flourish.
- Need for reforms in ITAT functioning, including stricter oversight and transparency.
Experts suggest introducing digital case management systems, randomised bench allocations, and independent audits to reduce opportunities for manipulation.
Voices from the Legal Community
Several senior advocates have condemned the incident, calling it a “betrayal of judicial ethics.” They argue that corruption in tribunals erodes trust in the entire judicial system.
Tax professionals worry that genuine appellants may now face greater scrutiny and delays, as authorities tighten controls to prevent further abuse.
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Government Response
While the Ministry of Finance has not yet issued a detailed statement, officials are reportedly reviewing ITAT procedures. Sources suggest that internal vigilance mechanisms will be strengthened, and disciplinary action will follow against those arrested.
Looking Ahead
The Jaipur ITAT bribery case is likely to become a test case for judicial accountability in India. It underscores the need for:
- Transparent appointment processes for tribunal members.
- Regular audits of tribunal orders.
- Strict punishment for those found guilty, to deter future misconduct.
As investigations continue, the case serves as a reminder that justice cannot be compromised for money. The credibility of India’s tax system depends on ensuring that appellate bodies remain free from corruption.
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