The Directorate General of GST Intelligence (DGGI), Delhi Zonal Unit, has arrested two directors of Modi Infosol Pvt. Ltd. for alleged GST fraud. Both accused were sent to 14-day judicial custody.
The accused persons namely Shyam Sundar Modi and Atul Modi have utilized and availed ineligible ITC to the tune of Rs. 7.72 crore and thus committed a serious economic offence.
M/s Smartgen infra pvt. Ltd was found to be non existence on its registered premises and its promoter admitted in the statement that statement of all fictitious transaction without actual movement of goods and confirmed that ITC credit availed on invoices by M/s Modi Infosole Pvt. Ltd. amounting to Rs. 2,21,40,071 were availed without actual receipt of goods and had issued invoices without movement of goods to M/s Modi Infosole Pvt. Ltd.
The accused namely Shyam Sundar Modi and Atul Modi filed the bail application wherein it was submitted that Shyam Sunder Modi is aged about 64 years and is a known case of Diabetes Mellitus, Hypertension, low HDL. Cholesterol, Ulcerative Proctosigmoiditis, and alarmingly High Level of HBA1C.
It was further submitted that Atul Modi is aged about 40 years and is a known case of Diabetes Mellitus, low HDL Cholesterol and has alarmingly High Level of HBA1C which has come and was also diagnosed with severe obstructive Lung Disease, which puts the applicant in the High-Risk Category of developing symptoms of COVID-19.
It is submitted that the company of the applicants is giving employment to 80 plus employees and if they are not released on bail the same will result in loss of economy and reputation.
The Court consists of Dr. Pankaj Sharam while rejecting the bail application held that the medical condition as pointed out in the application is concerned, for the said diseases adequate medical infrastructure is available inside the prison as nothing suggests that these diseases pose immediate life threat to the applicants. As it is apparent that investigation is still underway as enquiries from various other stakeholders and recovery of documents is continuing and the fact that accused persons being father and son are main beneficiaries of the alleged fake ITCs and played a major role in the entire act, the release of accused persons at this stage would certainly undermine free and fair investigation.
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