The Rajasthan High Court on Wednesday dismissed the bail application of Ankit Bansal, accused of masterminding a GST fraud involving over Rs 704 crore in fake Input Tax Credit (ITC). The case stems from an FIR registered by the Directorate General of GST Intelligence (DGGI), Jaipur Zonal Unit, alleging large-scale tax evasion through a network of 353 fake firms. It was argued by the standing counsel for DGGI that Bansal, along with his associate Rajesh Goyal, orchestrated a racket using non-existent firms to issue bogus invoices and launder money. During raids, unaccounted cash worth Rs 2.41 crore was seized, and statements from multiple individuals implicated Bansal as the kingpin.
Bansal was arrested on June 3, 2024. His counsel argued that the arrest violated constitutional rights, claiming he was held in custody illegally and not produced before a magistrate within 24 hours. However, the court noted that arrest procedures were followed as per the CGST Act, and the magnitude of the fraud warranted custodial interrogation.
The prosecution argued that Bansal created fake firms using forged documents, including stolen PAN and identity cards, to pass on fraudulent ITC. The court ruled that the quantum of evasion and its implications on the country’s financial integrity justified the denial of bail.
The bench of Justice Anand Sharma denied bail citing the magnitude of the fraud, the serious impact on the country’s financial system, and the potential to influence witnesses and tamper with evidence. The court ruled that in economic offences, the scale of the siphoned amount reflects the severity of the crime and the need for continued custody to safeguard the integrity of the investigation.
Source #TOI
