Patiala House Court Grants ₹2L Bail Bond to Accused in ₹17 Crore GST ITC Scam observing 24-Hour Plus Detention and other Irregularities [Read Order]
The Petitioner also raised multiple procedural lapses including the issuance of the search (jama talashi) record before the arrest memo during the entire ordeal.
![Patiala House Court Grants ₹2L Bail Bond to Accused in ₹17 Crore GST ITC Scam observing 24-Hour Plus Detention and other Irregularities [Read Order]](https://images.taxscan.in/h-upload/2025/07/19/2065629-gst-itc-fraud-case-taxscan.webp "Patiala House Court Grants ₹2L Bail Bond to Accused in ₹17 Crore GST ITC Scam observing 24-Hour Plus Detention and other Irregularities [Read Order]")
The Patiala House Court, New Delhi, has granted bail to an accused in a ₹17 crore Goods and Services Tax (GST) Input Tax Credit (ITC) fraud case, taking serious note of the procedural irregularities including detention beyond 24 hours prior to being produced before the magistrate.
The Applicant, being the proprietor of a business was alleged to have wrongfully availed and and passed on fraudulent ITC through a web of alleged bogus firms, resulting in a substantial loss to the government exchequer.
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However, it was the contention of the applicant that he had no role in any fraudulent activity and that he had duly received goods from suppliers and made payments through proper invoices.
The accused, appearing through Rahul Ranjan contended that under the CGST Act, 2017, a bona fide purchaser cannot be penalized for any default on the part of the supplier.
Another serious allegation raised by the applicant was that he was arrested in blatant disregard of his rights, as he had been detained for over 24 hours at the CGST office before being formally produced in court, contrary to established constitutional safeguards. He also pointed out multiple procedural lapses including the issuance of the search (jama talashi) record before the arrest memo.
P.C. Aggarwal, appearing for the Department refuted the contentions raised by the applicant.
The bench presided over by Chander Jit Singh (DHJS), acceded to the submissions of the applicant regarding procedural violations, including the unexplained delay in producing the applicant before a magistrate and discrepancies in official records relating to the arrest.
The Court also noted that the accused had been cooperating in the investigation, had no prior criminal antecedents, and was not demonstrated to be a flight risk.
Given the circumstances, the Court allowed bail to the accused, upon furnishing a bond of ₹2,00,000 with one surety, noting that no purpose would be served by continued incarceration given the documentary nature of the evidence and the completion of key stages of investigation.
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The Court also directed the accused to comply with conditions including regular appearance before the trial court and investigating officer as required.
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