The Meerut Court has denied bail to the accused citing Rs. 53.03 crore fraud, flight risk & evidence tampering concerns.
The bench of Mohd. Babar Khan (Additional District & Sessions Judge) has observed that the accused has committed a a grave economic offence. The total GST evasion so far has amounted to Rs. 53.03 Crores. The investigation is under progress. The applicant if released on bail will definitely try to destroy the evidence and influence the witnesses and there is his high flight risk considering his role.
An information was gathered that Gaurav Gupta alias Pintu is associated with the fake billing nexus and he is arranging cash rotation as well as providing fake tax invoices without actual supply of goods to certain manufacturer unit dealing in Copper and the data related to cash rotation by him and fake bill are either concealed in his residence or in his Kia car or Fortuner Car.
Accordingly, the residential premises of Gaurav Gupta were searched. After a search, Gaurav Gupta was summoned by the Senior Intelligence Officer, to appear in his office on the same day to tender a statement and to produce documents relevant with the investigation. The notice under Section 70 of CGST Act was issued to applicant/accused Gaurav Gupta and his statements were recorded.
Gaurav Gupta unequivocally admitted that he has bought the 12 fake firms and arranged fake ITC therein and passed on that fake ITC to the other taxpayers by issuing invoices of those firms without supplying of goods and thus, passed on fake ITC amounting to Rs. 41.90 Crores(approx).
He also unequivocally admitted in his statements that since all the purchase and sale in those 12 firms were without receipt and goods hence, whatever bills, bilties and e-way bills were issued from those firms all were fake.
Analysis of the GSTR-1M of all the 12 firms managed and controlled by Gaurav Gupta revealed that ITC amounting to Rs. 54.03 Crores has been passed by issuing tax invoices of those firms. Gaurav Gupta emerged out as the mastermind for the 12 firms managed and controlled by him, and the brain behind the entire availment of fake ITC on the strength of invoices taken without receipt of underlying goods and passing on of the fake ITC by issuing invoices of those firms without supply of goods and thus has committed the offences specified under Section 132(1)(c) and 132(1)(b) of the CGST Act, 2017 which are covered under Clause (i) of Section 132(1) of the CGST Act, 2017 and cognizable and non-bailable under the provisions of Section 132(5) if the CGST Act, 2017.
The Additional Director General DGGI, Meerut Unit Shri Satendra Mathuria has recorded his satisfaction on 13.02.2025 to the effect that it has been emerged that Gaurav Gupta has managed and controlled 12 firms and had fraudulently availed ITC amounting to Rs. 53,61,21,934/- and passed an ITC amounting to Rs. 54,03,41,186/- without receipt/ supply of underlying goods at the strength of fake tax invoices. Gaurav Gupta has individually managed and controlled the said firms, and thus, he is the mastermind and the brain behind the entire episode of availment of fake ITC on the strength of invoices taken without receipt of underlying goods in the firms manage and control by him and passing on of fake ITC by issuing invoices of those firms without supply of goods.
The accused while seeking the bail contended that Neither any electronic device nor any fake bills whatsoever were recovered at the time of search. He further submits that the competent authority has not recorded reasons to believe for affecting the arrest of the applicant/accused.
The government vehemently opposed the prayer for bail and has specifically submitted that an intel was developed to the effect that applicant/accused Gaurav Gupta alias Pintu is associated with the fake billing nexus and he is arranging cash rotation as well as providing fake tax invoice without actual supply of goods to certain manufacturer unit dealing in copper. His house was searched on 08.02.2024.
The court while denying the bail held that such offences like large scale fraud, money laundering and corruption, are often viewed seriously because they affect the economic fabric of the society. The Courts may deny bail in such cases especially if the accused holds a position of influence or power.
Case Details
Case Title: Gaurav Gupta s/o Surendra Gupta Versus Union of India
Case No.: Case No.1505/2024
Date: 24.03.2025
Counsel For Petitioner: Nitin Kaushik
Counsel For Respondent: Special Public Prosecutor (Customs and GST) Shri Lakshay Kumar Singh
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