Journalist Mahesh Langa Moves Gujarat High Court Against Ten-Day Police Remand In Alleged GST 'Fraud' Case

Journalist and Senior Assistant Editor at 'The Hindu' newspaper–Mahesh Langa moved the Gujarat High Court on Friday (October 11) challenging the 10-day police remand granted by a magisterial court, in an alleged Goods and Services Tax "fraud" case. 

After hearing the matter for some time a single judge bench of Justice Sandeep N Bhatt orally asked the counsel appearing for the State to get instructions in the matter listing it on October 14. The court further asked Langa's counsel to supply a copy of the petition to the state's counsel, who submitted that she had not received the papers.

The court orally said, "Let it be on Monday. If you want you can take instructions, if required file an affidavit...remand is granted for 10 days on Monday we have to proceed with the matter...Take instructions". 

During the hearing, senior advocate Jal Unwala appearing for Langa, argued that the petitioner had challenged the remand order wherein the magistrate's court had "straightway" granted 10-day remand in an offence under Section 420 IPC.

At this stage, the high court orally said, "See the gravity of offence". To this Unwala appearing along with advocates AJ Yagnik and Vedant Rajguru, said, "Supreme Court and judgments say that it is ultimately not by the gravity but need for remand which would be very relevant here". 

He thereafter contended, "This entire case of Department is that there are almost 220 220 shell companies out of which they are trying to take credit and causing loss to the government. Out of 220 companies mine is just one company which is known as DA enterprise. Now DA enterprise has two proprietors- one is Mr Manojbhai and one is Kavita ben. Manojbhai happens to be my cousin's brother". 

He further submitted that Langa was not even named in the named in the FIR while Manojbhai was shown as a witness by the investigating officer. 

Background

The plea submits that a complaint was filed by Senior Intelligence Officer, Directorate General of Goods and Service Tax Intelligence [DGGI], Zonal Unit, Ahmedabad addressed to the Assistant Commissioner of Police, Crime Branch, Ahmedabad on October 7 regarding some information obtained and investigation carried out by the office of DGGI. 

The plea submits that the complaint states that there is an alleged involvement of over "20 fraudulently created firms/entities" which are working across the country in an "organized manner to defraud the Government Exchequer by availing and passing of bogus Input Tax Credit". 

The plea states that an FIR was registered with DCB Police Station, Ahmedabad City on October 7 for IPC offences under Sections 420(Cheating and dishonestly inducing delivery of property), 467(Forgery of valuable security, will, etc.), 468(Forgery for purpose of cheating), 471(Using as genuine a forged document or electronic record), 474(Having possession of document described in section 466 or 467, knowing it to be forged and intending to use it as genuine) and 120B (Punishment of criminal conspiracy). 

It states that the Langa was apprehended and was in the custody of the respondent police station from the morning of October 7 "around 1 a.m." till he was produced before the magistrate's court on October 9 at around 11:30 am. 

It states that though the Investigation Officer (IO) sought 14 day remand, the Additional Chief Judicial Magistrate, Ahmedabad after hearing the parties, granted 10 day remand till October 18. The plea claims that the IO sought remand on the ground that the petitioner was managing and supervising the affairs of one 'DA Enterprise'which had entered into transaction of Rs. 236,74,533 with a "bogus firm namely Dhruvi Enterprise".

The plea states that the IO while seeking remand claimed that Langa "remained behind curtain and created 'DA Enterprise' in the name of his cousin brother and his (Langa's) wife", misused his position and influence and entered into transactions with bogus firms benefitting at the cost of state exchequer. The IO had claimed, the plea states, that a sum of Rs. 20 Lakh was found from Langa's house when the officers from the respondent police station visited, adding that he was not in a position to explain why huge amounts of cash was lying in the house. 

The plea seeks quashing of the remand order on the ground that Langa is not even remotely connected with the 'D A Enterprise' and the investigating officer has not pointed out a single instance as to how Langa is connected with working and affairs of such enterprise.

"The findings mentioned in the order passed by the Ld. Court allowing remand qua the present petitioner is nothing but a verbatim reproduction of the grounds mentioned by the investigating officer in his remand application and therefore there is non-application of mind while passing the impugned Order," the plea submits. 

It states that the magistrate's court did not record any finding as to what weighed with it upon perusal of the case diary for coming to conclusion that "prima facie" case is made out against the petitioner with regard to his involvement in the offence. It claims that there is "non-application" of mind while allowing Langa's remand. 

Case title: Maheshdan Prabhudan Langa v State of Gujarat and Anr.