Gujarat High Court Grants Bail in Rs. 1466 Crore Alleged GST Scam Case

The Gujarat High Court has granted bail to a man in a case involving an alleged GST scam amounting to Rs. 1466 crores.

This ruling came following an application filed by the accused under Section 439 of the Code of Criminal Procedure, 1973, for regular bail in connection with a case registered with the Directorate General of GST Intelligence, Rajkot,

The Senior Advocate appearing on behalf of the applicant submitted that the applicant was arrested in connection with the present offence on 12.10.2023 and since then the applicant was in custody. He further submitted that the applicant had cooperated with the investigation and had provided all the information which he had about the concerned authorities and on the basis of the said information provided by him,, the concerned authority had also lodged a complaint against him for the offences in question before the Court.

He further submitted that the punishment prescribed for the offence alleged against the present applicant was imprisonment for five years only.

He also contended that the offence was triable by the Court of Magistrate. The trial of the offence is not likely to commence and conclude in the near future. He, therefore, submitted to allow the present application and enlarge the present applicant on bail subject to suitable conditions.

Advocate Nikunt K Raval appearing on behalf of the Intelligence Officer (respondent no.2) opposed the application, contending that the entire scam runs into Rs.1466/- crores.

He submitted that the applicant was the main perpetrator, who had availed the benefit of Input Tax Credit on the basis of forged and fictitious records to the tune of crores of rupees. He further submitted that the investigation with other co-accused is still in progress and the authority in question was required to find the entire trail of money and is also required to book the other co-accused for the offence in question for which the presence of the present applicant in custody is necessary.

The Court after hearing the advocates appearing on behalf of the respective parties observed that in the present case, the investigation was over and a charge-sheet was filed.

The Court further observed that it was alleged against the present applicant that the applicant had availed the benefit of Input Tax Credit on the basis of forged and fictitious records. The applicant was alleged to have availed such benefit for purchase of certain goods, which were actually not purchased physically by the present applicant and has thus, availed the benefit worth crores of rupees under the guise of such fictitious purchase.

The Court further observed that the offence alleged against the present applicant was punishable with imprisonment for 5 years.

This Court also took into consideration the law laid down by the Apex Court in the case of Sanjay Chandra v. Central Bureau of Investigation, reported in [2012]1 SCC 40.

“In the facts and circumstances of the case and considering the nature of the allegations made against the applicant in the FIR, without discussing the evidence in detail, prima facie, this Court is of the opinion that this is a fit case to exercise the discretion and enlarge the applicant on regular bail,” Justice MR Mengdey presiding over the case held while allowing the application.

Appearance:

MR JAL SOLIN UNWALA, SENIOR ADVOCATE WITH, MR. APURVA N MEHTA(7202) for the Applicant(s) No. 1, MR NIKUNT K RAVAL(5558) for the Respondent(s) No. 2, MR CHINTAN DAVE, APP for the Respondent(s) No. 1

Case Number: R/CRIMINAL MISC.APPLICATION (FOR SUCCESSIVE REGULAR BAIL - AFTER CHARGESHEET) NO. 512 of 2024

Case Title: HITESH PRABHUDAS LODHIYA Versus STATE OF GUJARAT

LL Citation: 2024 Livelaw (Guj) 30

Click Here To Read/Download Judgment