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₹13 Crore Fake ITC: Bombay HC Denies Bail
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Bombay High Courttaxcriminal

₹13 Crore Fake ITC: Bombay HC Denies Bail

October 10, 2026

Bombay HC denies bail in ₹13 crore fake GST ITC case involving 12 non-existent suppliers; invoices lacked actual supply.

₹13 Crore Fake ITC: Bombay HC Denies Anticipatory Bail

The Bombay High Court refused to grant anticipatory bail in a GST case concerning alleged fake ITC worth ₹13 crore generated through 12 non-existent suppliers. The court accepted the prosecution's claim that invoices were issued without any actual movement or supply of goods.

Investigators traced a paper trail showing ITC utilization from fictitious vendors, many of which were deregistered or never operational. The court emphasized the need for custodial interrogation to identify other nodes in the network and seize digital records.

This decision adds to a series of Bombay HC rulings denying bail in fraudulent invoicing cases, reinforcing that economic offences involving systemic abuse of the ITC mechanism will attract strict legal scrutiny. Businesses must maintain rigorous documentation and audit trails to defend against allegations of complicity.

Citations

  • Section 438 CrPC
  • Section 69 CGST Act
Practice Areas:taxcriminal

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