2.27 Crores Sale Transaction through Bogus Firm Registered under GST Act: Delhi HC refuses to Grant Anticipatory Bail [Read Order]

The Delhi High Court refused to grant anticipatory bail on an offence related to a 2.27 Crores sale transaction through a bogus firm registered under the Good Service Tax (GST) Act, 2017.

Shashi Kant Gupta, the applicant filed applications under Section 438 of the Code of Criminal Procedure, 1973 (CrPC) seeking anticipatory bail in case FIR No. 142/2021, under Sections 419/420/467/468/471/120B of the Indian Penal Code, 1860 (IPC), registered at P.S. Economic Offences Wing, Mandir Marg, Delhi.                                                              

Sh. Rajiv Jain S/o Shri Srichand Jain, Prakash House had filed a complaint at EOW alleging therein that he is a Chartered accountant by profession and when he downloaded his form 26AS from the Income Tax portal, he came to know that a GST number had fraudulently been generated in the name of M/s Madhu Enterprises using his PAN number.

The complainant further alleged that using this fraudulently obtained GST number, the accused showed transactions worth Rs. 14.80 Crores in the short duration of July 2019 to November 2019. The present case was registered and an investigation was taken up. 

During the investigation, documents/information were obtained from the GST department. The mobile number and email ID used in the registration of the alleged GST number 06AAHPJ723SK1ZJ using fraudulent means were procured through the said reply obtained from the GST department. Ownership/CAF of the said mobile number 9899022917 which is mentioned in the registration certificate of the alleged GST number was obtained and it was found that said number was activated on 01.07.2019 and was registered in the name of one Mr. Surjeet Singh Gusain S/o B.S. Gusain.

Further, Mr. Surjeet Singh Gusain was interrogated in the case. During interrogation, he revealed that he was working as a security guard in the family-owned firm/companies of the applicant. The Security guard was interrogated in detail and revealed that copies of Identity-related documents in the name of opening a bank account for credit of salary in the account were obtained from him. During further interrogation, it was revealed by the said employee that though the documents were obtained in the name of opening of bank account, however, he has never been informed regarding the bank accounts opened if any, in his name.

Further, on perusal of the bank account of Mis Shashi Plast Pvt. Ltd. maintained with Bandhan Bank, it has been found that an amount of Rs. 3.00 crore (Approx) has been transferred into the accounts of suspected firms namely Global Traders, Parfait Dealers. It is worth mentioning that Shashi Plast Pvt. Ltd., Global Traders and Parfait Dealers are the firms/companies with whom lots of business transactions with the subject firm namely Madhu Enterprises, have been found. In Shashi Plast Pvt. Ltd. Mr Shahsi Kant Gupta and present applicant, Mr. Akshay Gupta are the Directors. On the other hand, in M/s Global Traders and Parfait dealers Surjeet Singh Gusain is one of the partners. Crores of rupees have also been found transferred from this account to many other firms named by the employee of Bandhan Bank as mentioned above.

Per contra APP for the State submitted that during the investigation, records of business transactions relating to the firm namely M/s Madhu Enterprises were obtained from the GST Department, Jamshedpur.

It was found that the said fraudulently opened firm had made transactions worth crores of rupees with eight firms registered with the GST Departments in Delhi and Uttarakhand. As per the investigation, these eight firms were in direct control of the present applicants and it was revealed that the said alleged fraudulent firm M/s Madhu Enterprises had shown goods and articles worth 2.27 Crores sold to three of the eight firms above of which the applicants herein are directors.

 It was also pointed out that Mr Sujeet Singh Hussain, in whose name the aforesaid M/s Madhu Enterprises was registered, has given statements to the effect that he was working as a security guard in the office of present applicants, who got his signatures for opening the bank account and fraudulently got the firm registered in his name as well as other employees.  Counsel for the applicant has vehemently argued that the contents of the status report filed by the Investigating Officer are mala fide.

Justice Amit Sharma observed that the investigation from the GST Department has also revealed that the aforesaid M/s Madhu Enterprises made business transactions worth crores of rupees with three entities of which the present applicants were directors and despite that said fact, the applicants have been evading from giving details of the said transaction. 

The interim protection granted to Shashi Kant Gupta and Akshy Gupta is withdrawn. 

To Read the full text of the Order CLICK HERE

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