The Esplanade Court, Mumbai has granted bail to businessman Jitendra Chandulal Jain, director of New Infrastructure Pvt. Ltd., who was arrested for allegedly availing and passing on fraudulent Input Tax Credit (ITC) worth ₹26.65 crore under the Goods and Services Tax (GST) Act.
According to the Directorate General of GST Intelligence (DGGI), Mumbai Zonal Unit, Jain allegedly availed ineligible ITC of ₹13.48 crore using forged invoices and further passed on ₹13.17 crore of such credit to beneficiary firms. He was arrested on October 30, 2025, following search and seizure operations at his business premises.
DGGI argued against bail, claiming that Jain had not disclosed the alleged reversals before his arrest and that despite partial reversal, his criminal liability remained. The agency further contended that releasing him could lead to tampering with evidence or absconding.
Dr. Sujay Kantawala, the counsel for the accused, submitted that he is a permanent resident of Mumbai and director of an infrastructure company. The case is entirely documentary, and all records have already been seized. He has no criminal antecedents. He has already reversed ₹9.10 crore of the disputed ITC. Custodial interrogation is complete, making continued detention unnecessary.
The court noted that the allegations were serious but the investigation was largely documentary. Jain has been in custody since October 30, 2025. The DGGI has already seized necessary documents and recorded his statement. No prior criminal history was cited by the agency. Offences under the GST law are compoundable and triable by the magistrate. Stringent conditions could sufficiently address concerns of absconding or interference.
The court concluded that Jain’s further physical custody is not necessary for the investigation.
Jain was granted bail subject to various conditions.
Firstly, PR bond of ₹2 lakh with one or two sureties. Provisional release permitted on cash bail of ₹2 lakh for two months. He must not influence witnesses or tamper with evidence. Must cooperate with the investigation and appear when called. Must surrender his passport to DGGI for six months. Court permission required for foreign travel. Must provide residential address, contact details, and details of two close relatives.
The court clarified that the DGGI must return Jain’s passport after six months with due acknowledgment.
Case Details
Case Title: Shri. Jitendra Chandulal Jain Versus Senior Intelligence Officer, DGGI, Mumbai Zonal Unit
Case No.: R. A. NO. 907 OF 2025
Date: 20.11.2025
Counsel For Petitioner: Dr. Sujay Kantawala
Counsel For Respondent: Special PP Ms. Punde
