Claim

Police had to release Avinash Shukla because Champat Rai refused to register an FIR, and on 7 June Champat Rai issued a statement that no offerings theft had occurred at the temple.

“लेकिन बाद में पुलिस को उसे छोड़ना पड़ा क्योंकि चंपत राय ने चढ़ावा चोरी के एफआईआर दर्ज करवाने से मना कर दिया था... और बाद में 7 जून को बयान जारी कर दिया कि मंदिर में कोई चढ़ावा चोरी नहीं हुई।”

Rationale

The reporting supports both parts of the claim: Avinash Shukla was caught on June 5 (police and trust members recovered ~Rs 20 lakh) but was not arrested and no FIR was filed at that time, and on June 7 Champat Rai publicly rejected the embezzlement allegations, saying an internal audit found 'nothing noteworthy' — effectively denying any offerings theft. Shukla was arrested only after the FIR was finally registered on June 25 following the SIT probe. The specific causal attribution that Shukla's release was because Champat Rai 'refused to register an FIR' is the central issue the SIT is investigating (the unexplained delay in lodging the FIR under the Trust's watch) and is consistent with the documented sequence, though it remains an allegation rather than an adjudicated fact — hence moderate confidence.

Evidence

• https://www.freepressjournal.in/india/from-selling-water-to-ram-temple-theft-accused-20-lakh-cash-recovery-raises-fresh-questions Reports that on June 5 police personnel and trust associates brought Avinash Shukla to a room where cash was recovered, yet no FIR was lodged that day; the SIT is now probing why the FIR was delayed — Shukla was caught early but not arrested. ✓ reachable · archived
• https://theprint.in/india/ram-temple-donation-theft-case-ayodhya-police-record-champat-rais-statement/2974013/ Confirms that on June 7, responding to Akhilesh Yadav's embezzlement allegations, Champat Rai rejected the claims and said 'nothing noteworthy' had emerged from an internal audit — i.e. he publicly denied any donation theft; the FIR was only registered June 25. ✓ reachable · archived
• https://www.business-standard.com/india-news/ram-temple-donation-row-sit-finds-blatant-sop-violations-8-arrested-126062700453_1.html Confirms Shukla was among 8 arrested only after the FIR was registered on June 25, following the SIT report — establishing the gap between his June 5 detention/release and eventual arrest. ✗ unreachable · HTTP 403
• https://www.oneindia.com/india/ram-temple-donation-theft-ayodhya-police-seek-custody-of-key-accused-avinash-shukla-8135437.html Identifies Avinash Shukla as the key accused from whose residence ~Rs 20 lakh cash plus gold and foreign currency were recovered, later taken into custody. ✓ reachable · archived