Telangana HC Grants Bail in Rs. 30 Crore Fake GST ITC Case; Notes No Complaint Filed Despite 60 Days of Custody [Read Order]

The Telangana High Court has granted regular bail to an individual accused of facilitating fraudulent Input Tax Credit (ITC) amounting to Rs. 30 crores, citing the failure of the investigating agency to file a complaint despite the accused spending 60 days in judicial custody.

The Criminal Petition was filed by Faisal Malik, the managing partner of M/s. F.K. Metals Traders, seeking bail in a case registered by the Director General of GST Intelligence (DGGI), Hyderabad. The petitioner was booked under Sections 132(1)(b)(c)(l) and Section 132(5) of theCGST Act, 2017.

The case originated from a complaint alleging that the petitioner was involved in the availment and passing of fraudulent ITC to the tune of Rs. 30 crores approximately. It was alleged that he facilitated other entities and end beneficiaries on the pretext of procuring metal scrap without any actual supply of goods.

The counsel for the petitioner, Mohd. Moin Ahmed Quadri, argued that the petitioner was innocent and falsely implicated in the case. It was submitted that the petitioner had been in judicial custody since 10.04.2026 and that no purpose would be served by continuing his incarceration.

Opposing the bail plea, the Additional Public Prosecutor, M. Ramachandra Reddy, submitted that the petitioner was the "mastermind" behind the crime. He argued that the allegations were serious, involving the issuance of fake invoices, and that the investigation was still pending. It was contended that the petitioner should not be enlarged on bail at this stage.

Justice K. Sujana, after hearing both sides and perusing the records, noted the duration of the petitioner's detention. The Court highlighted that the alleged offence is punishable with five years of imprisonment and that the petitioner had already completed 60 days in jail.

Crucially, the Court observed that even after 60 days of the petitioner's incarceration, no complaint had been filed by the authorities before the competent court.

"Taking into consideration the nature of the allegations and the period of incarceration of the petitioner since 10.04.2026, this Court is inclined to grant regular bail to the petitioner," the Court stated.

The Court allowed the criminal petition and granted bail subject to stringent conditions. The petitioner was directed to execute a personal bond for Rs. 1,00,000/- with two sureties for a like sum each. Additionally, the petitioner must appear before the respondent authorities every Monday and Friday between 9:00 a.m. and 5:00 p.m. for one month and is strictly directed not to influence any witnesses. The petitioner was also ordered to abide by the conditions stipulated in Section 483(2) of the Bharatiya Nagarik Surakhsha Sanhita (BNSS), 2023.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates