The Patiala House Court directed that the coercive measures need not be taken against Sriram Venkataraman, Instakart’s CFO.
The applicant, Sriram Venkataraman claims that M/s Instakart Services Private Limited was itself duped by M/s MFPL and M/s STMPL.
On the other hand the department claims that both the entities are in fact dummy entities and M/s Instakart is the key player behind the entire tax evasion.
The court raised the Specific various queries.
Firstly, process for GST registration as infact M/s MFPL and M/s STMPL were issued valid registration number (as claimed by the applicant and not disputed by the respondent department) and what action was exactly initiated by the department to ensure that the said entities are in fact fake entities including action, if any, against the delinquent employees involved in issuance of registration numbers to fake entities.
Secondly, what is the incriminating material available on record against M/s Instakart to rule out the possibility that M/s Instakart was duped by M/s MFPL and M/s STMPL.
Thirdly, Whether the matter has been reported to ED as a prima facie offence under PMLA also appears to have been committed in the instant matter.
The department so as to address the queries requested the court for a short adjournment.
The court consisting of Dharmender Rana directed that no coercive measures be taken against the applicant.
The court directed the department to file its comprehensive reply by way of an affidavit through a competent officer in terms of order of Delhi High Court in the matter of Mohd. Danish v. State (NCT of Delhi).
The matter was listed on 13 January, 2021 for the next hearing.
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