Rs. 175 Cr GST Scam: Bombay HC invalidates Arrest of Sales Tax Officer
The court ordered his immediate release for the lack of adherence to legal requirements during his detention
In a significant blow to the Anti-Corruption Bureau’s (ACB) investigation into a ₹175 crore GST scam, the Bombay High Court has declared the arrest of sales tax officer Amit Lalge illegal due to procedural violations. The High Court observed that Lalge’s arrest violated constitutional protections under Article 22(1) and procedural safeguards outlined in the Code of Criminal...
In a significant blow to the Anti-Corruption Bureau’s (ACB) investigation into a ₹175 crore GST scam, the Bombay High Court has declared the arrest of sales tax officer Amit Lalge illegal due to procedural violations.
The High Court observed that Lalge’s arrest violated constitutional protections under Article 22(1) and procedural safeguards outlined in the Code of Criminal Procedure (CrPC). The bench noted that the remand order does not reflect that the petitioner was informed of the grounds for his arrest. Since the grounds of arrest were not provided at the time of detention or before the remand hearing, the arrest is null and void. Consequently, subsequent remand orders are also invalid, therefore, directing his immediate release.
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Lalge is accused of conspiring with 16 companies to facilitate fraudulent GST refunds amounting to ₹175 crore by submitting fabricated documents. The alleged offenses occurred between August 2021 and March 2022. According to the ACB, Lalge colluded with the companies’ directors to execute the scheme. He was detained on June 25, 2024.
Lalge’s counsel, Mohan Tekavde, argued that his client’s constitutional rights were grossly violated. The defense highlighted that Lalge was not provided with an arrest memo or formally informed of the reasons for his detention, as required under Article 22(1). Tekavde contended that the absence of this information rendered the arrest illegal.
Complete Supreme Court Judgment on GST from 2017 to 2024 with Free E-Book Access, Click here
In response, the ACB claimed that Lalge was aware of the allegations through prior inquiries and recorded statements. They also asserted that the grounds for arrest were verbally communicated, and his family was notified.
However, the court rejected these arguments, citing a lack of documented proof and procedural compliance, while ordering immediate release.
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