CA gets bail in GST refund fraud case – Rajasthan High court

written by ADMIN | May 18, 2020

In a recent miscellaneous application for bail filed before the Jodhpur bench of The High Court of Rajasthan, bail application of the Chartered Accountant (CA), who is accused of creating bogus firms to grab GST refunds was allowed.

The petitioner has devoured a huge amount of Rs.17 crores by fraudulent transactions, and to date only around one crore has been recovered in the matter by the GST department.

The petitioner is further alleged to be the kingpin of the whole fraud committed by him and of creating bogus firms or companies claiming GST Refunds for the transactions which never took place. The money withdrawn by the petitioner has been deposited in the bank accounts of his relatives and the GST Department had issued summons to them for the purpose of investigation and the same is still going on.

The respondent contended that if the petitioner is enlarged on bail, there are chances that he may influence the witness, and recovery of the embezzled public money will be difficult.

The single-judge bench of Justice Dinesh Mehta allowed the bail application of the Chartered Accountant (CA), who is accused of creating bogus firms to grab GST  refunds. The court allowed the bail application on the conditions that within a period of two weeks of release, the petitioner shall furnish an undertaking in the Trial Court incorporating the four conditions which are:

1. Neither the petitioner nor his wife, children, father and mother shall transfer, sell or otherwise alienate any of their moveable or immoveable properties.

2. He will surrender his passport (if any) in the Trial Court within two weeks of his release.

3. He will furnish details of all his bank accounts, and

4. He will not withdraw more than Rs. 50,000/- per month from his bank accounts.

The Hon’ble High court further stated that “In case of breach of any of the conditions of the undertaking(s), the State will be free to take appropriate proceedings, including applying for cancellation of the bail so granted,” the court said.

To read full Judgement CLICK HERE.

 

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