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₹29.7 Crore Fake ITC: Bombay HC Denies Bail
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Bombay High Courttaxcriminal

₹29.7 Crore Fake ITC: Bombay HC Denies Bail

October 10, 2026

Bombay High Court denies anticipatory bail in a ₹29.7 crore fake GST ITC case involving non-existent firms, citing necessity of custodial interrogation.

Bombay HC Rejects Bail in ₹29.7 Crore GST Fraud

In another stringent ruling, the Bombay High Court declined anticipatory bail to an accused in a GST fraud case involving alleged fake ITC of ₹29.7 crore. The court observed that the investigation involved multiple entities with no physical presence or genuine business activity.

Emphasizing the gravity of economic fraud under GST, the bench held that custodial interrogation was essential for verifying the genuineness of transactions, tracing benami operators, and identifying links between fictitious firms. The court found the allegations sufficient to invoke stringent action under the CGST Act.

This judgment reinforces judicial confidence in tax authorities’ investigations into phantom ITC claims. For practitioners, it underscores the need to conduct robust due diligence on business partners and maintain verifiable documentation for all ITC claims, especially in high-turnover sectors.

Citations

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

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