The Telangana High Court has granted anticipatory bail to two partners of M/s Keshaan Industries LLP, accused in a large-scale Goods and Services Tax (GST) fraud case involving fake invoices, wrongful Input Tax Credit (ITC) claims, and alleged revenue loss of over Rs. 33 crore to the state exchequer.
The bench of Justice K. Sujana observed that the allegations are primarily based on documentary and digital evidence such as GST returns, e-way bills, invoices, toll gate data and related financial records, all of which have already been seized by the concerned authorities.
The case originated from a complaint filed by K. Devendhar, Assistant Commissioner of State Taxes, Medak Circle, alleging that the accused firm generated fake tax invoices without actual supply of goods. Investigators found that e-way bills were raised for copper consignments purportedly sent to Maharashtra, while vehicles moved empty. Data from toll plazas and border check-posts confirmed that no goods were transported.
Authorities further alleged that the firm created fictitious transactions exceeding ₹100 crore and fraudulently claimed ITC by using details of non-existent taxpayers, thereby reducing its tax liability.
The petitioners, represented by senior counsel B. Chandrasen Reddy, argued that they were falsely implicated and had no direct role in the issuance of fake invoices. They contended that all evidence in the case was documentary, based on GST returns, e-way bills, and toll records. Custodial interrogation was unnecessary and violated Article 21 rights. The matter essentially related to tax adjudication under GST law, and criminal prosecution was premature. One of the partners had previously been arrested in 2023 in a similar matter and was already granted bail.
Additional Public Prosecutor Syed Yasar Mamoon opposed the bail plea, asserting that the partners were actively involved in the fraudulent operations of the LLP. He argued that Section 137(3) of the CGST Act deems every partner liable for offences by the firm unless proven otherwise. The fraud was systematic and repeated, requiring custodial interrogation to trace the money trail and identify accomplices.Granting bail could allow the accused to tamper with evidence or influence witnesses.
The court noted that while economic offences are serious, the need for custodial interrogation must be assessed case by case. Since the allegations were based primarily on documents already seized by the authorities, the Court found no justification for arrest.
The Court emphasized that effective investigation could continue without custodial detention, particularly when the accused had assured cooperation.
Granting anticipatory bail, the Court directed the petitioners to surrender before the Central Crime Police Station, Hyderabad, within two weeks; execute a personal bond of ₹5 lakh each, with two sureties of the same amount; appear before the Investigating Officer every Monday until the chargesheet is filed; and abide by all conditions under Section 482(2) of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023.
The Court concluded that custodial interrogation was “neither warranted nor justified” in this case and allowed the criminal petitions.
Case Details
Case Title: Vikash Kumar Kershan Versus State of Telangana
Case No.:Crl.P.Nos.10076 & 10318 of 2025
Date: 22.08.2025
Counsel For Petitioner: senior counsel B. Chandrasen Reddy
Counsel For Respondent: Additional Public Prosecutor Syed Yasar Mamoon
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