The Meerut Court has remanded the person accused of Rs. 23.47 Crore GST Fraud to the judicial custody.
Azharuddin, proprietor of M/s New Global Scrap Traders, was arrested by the CGST Commissionerate, Gautam Buddh Nagar, for his alleged role in availing and passing on fraudulent Input Tax Credit (ITC) to the tune of ₹23.47 crore based on bogus invoices issued without actual supply of goods.
The ITC was passed through a nexus of non-existent entities, and ultimately credited to M/s Ambashakti Industries Ltd. The search operations at the declared business premises of several supplier firms revealed them to be non-operational, strengthening the case of a fictitious supply chain and circular trading in violation of Section 132 of the Central Goods and Services Tax Act, 2017.
Following the arrest, the accused was produced before the Remand Magistrate / Additional Chief Judicial Magistrate, Meerut. During the proceedings, the defence objected to the arrest procedure, alleging non-compliance with mandatory safeguards under the CGST Act and BNSS, including claims of illegal detention exceeding 24 hours.
However, after hearing both sides and perusing the departmental documents, the Hon’ble Court rejected the defence objections, noting absence of any prima facie material to support the claims.
On behalf of the prosecution, Mr. Lakshay Kumar Singh, Special Public Prosecutor (GST), appeared and successfully argued for judicial custody, citing the seriousness of the offence, risk of tampering with evidence, and the statutory non-bailable nature of the offence under Section 132(5) CGST Act. Accepting the submission, the Court granted 14 days’ judicial remand of the accused till 27 June 2025, directing his lodging at District Jail, Meerut.
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