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TMI Blog2023 (4) TMI 343X X X X Extracts X X X X X X X X Extracts X X X X ..... ion against these petitioners for commission of economic offences. It is true that the petitioners are in custody for little more than seven months and charge sheet has already been filed in the meantime, but considering the allegation of huge amount of financial fraud being leveled against the petitioners by itself in the facts and circumstance of the case not entitle them for grant bail at this stage. Besides, the alleged manner and method of commission of offence involving such huge amount of tax evasion by way of issuing fake invoices and availing input tax credit without physical purchase and supply of goods in the guise of business of non-existing entities with existing and non-existing companies and thereby, resulting in defraud of State Exchequer for such a huge amount, would by itself constitute prima facie materials against the petitioners for not considering their bail applications positively. In such circumstance and taking into consideration the availability of prima facie allegations against the petitioners for their involvement in commission of economic offences to the tune of Rs.316 crores and some odd and keeping in mind the fact that some of the co-accused a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that M/S. Sairam Ingot Private Limited is a physically non-existent company having no business activities in operation at its registered place of location, but the petitioner Dhanman Shaw and his family members continued to control its activities and utilized the said company for passing of bogus input tax credit to two others existing companies under the seal and signature of Directors, and the petitioner Dhanman Shaw was alleged to have operated the activities of said non-existent company and caused evasion of GST running to crores of Rupees. It is also alleged that the remaining two existing companies M/S. Swastik Ingot Private Limited and M/S. Sunayana Metal Industries Limited are primarily being manufacturing units for producing iron and steel goods and petitioner Ram Bharose Shaw and his brother petitioner-Dhanwan Shaw, although stated to be resigned as Directors with effect from 01.06.2019, but it is claimed that documentary evidence reveals that petitioner Dhanwan Shaw and his family members continue to act as de-facto Directors/operators of the companies and the three petitioners along with others have used false tax invoices issued in the name of non-existent and ghost b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osecution report was submitted before the Court. 4. In the course of hearing of bail application, Mr.Biswajit Nayak, learned counsel for the petitioner- Niku Singh in BLAPL No. 9319 of 2022 by taking this Court through the allegations against the petitioner has submitted that the petitioner is no way connected in this case and all the allegations are directed against the Directors of three companies, but the allegation against the petitioner for collecting personal identity documents of 10 numbers of person and creating ghost firms in the name of said persons by misusing the documents appears to be incorrect. It is further submitted that the offence alleged against the petitioner are triable by Magistrate First Class and the punishment prescribed therein may extend to five years and with fine, but the petitioner having detained in custody more than seven months and in the meantime final P.R. having already been submitted resulting in taking cognizance of offences, no fruitful purpose would be served for detaining the petitioner in custody any further. It is also submitted that when fictitious transactions, which means no transaction has taken place as alleged by the Departmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that the petitioner-Niku Singh by creating and operating ten numbers of ghost business entities has availed more than Rs.100 crores input tax credit and thereby defrauded the State to the tune of such amount and the manner of commission of the offences is by claiming, utilizing and passing bogus input tax credit through fake transaction of non-existent and fictitious business entities. It is also submitted that the petitioners are influential persons and have the capacity to influence the witnesses in case they are being released on bail and they also pose flight risks. It is further submitted that the petitioners were operating through one fictitious company M/S. Sairam Ingot Private Limited and two other existing companies with 25 numbers of ghost business entities and the petitioners thereby in collusion with other were alleged to have availed input tax credit to the tune of Rs.316 crores and some odd amount on the strength of fake invoices purportedly issued in the name of ghost entities without physical receipt and supply of goods during the period of July, 2017 to November, 2019 and the modus of operation of all the petitioners are same. It is also submitted that althoug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h business entities had availed bogus input tax credit on the strength of fake invoices without physical receipt supply of goods and he, thereby, was alleged for defrauding the State Exchequer for an amount of Rs.105.77 crores. In the course of hearing of bail application, although learned counsel for the petitioner Niku Singh has tried to impress upon the Court that the petitioner is no way involved in this case, but the prosecution report so produced on behalf of the CT GST discloses some prima facie materials against the petitioner Niku Singh for creating and operating ten numbers of non-existent business entities for issuing fake invoices of these business entities to company M/S. Swastik Ingot Private Limited and M/S. Sunayuana Metal Industries Limited and one non-existent company M/S. Sairam Ingot Private Limited and in the process, these companies have claimed and utilized bogus input tax credit and allegedly availed bogus input tax credit amounting Rs.105.77 corres on the strength of fake invoices without physical receipt and supply of goods. Similarly, there is allegation against the petitioner Dhanman Shaw for operating companies in the name of M/S. Swastik Ingot Priv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on by the petitioners. While considering the bail application of a person accused of economic offences of huge magnitude on prima facie accusations, no liberal approach should be adopted, especially when the extent of economic offence runs to more than hundreds of crores and the law on this point has been more or less explained by the Apex Court in following decisions in State of Gujarat Vrs. Mohanlal Jitamalji Porwal; AIR 1987 SC 1321, Y.S.Jagamohan Reddy Vrs. Central Bureau of Investigation; (2013) 7 SCC 450 and Nimmagada Prasad Vrs. Central Bureau of Investigation; (2013) 7 SCC 466. 8.1. In Mohanlal Jitamalji(supra), the Apex Court in Paragraph-5 has held as follows:- The entire Community is aggrieved if the economic offenders who ruin the economy of the State are not brought to books. A murder may be committed in the heat of moment upon passions being aroused. An economic offence is committed with cool calculation and deliberate design with an eye on personal profit regardless of the consequence to the Community. A disregard for the interest of the Community can be manifested only at the cost of forfeiting the trust and faith of the Community in the system to admi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has already been filed in the meantime, but considering the allegation of huge amount of financial fraud being leveled against the petitioners by itself in the facts and circumstance of the case not entitle them for grant bail at this stage. Besides, the alleged manner and method of commission of offence involving such huge amount of tax evasion by way of issuing fake invoices and availing input tax credit without physical purchase and supply of goods in the guise of business of non-existing entities with existing and non-existing companies and thereby, resulting in defraud of State Exchequer for such a huge amount, would by itself constitute prima facie materials against the petitioners for not considering their bail applications positively. In such circumstance and taking into consideration the availability of prima facie allegations against the petitioners for their involvement in commission of economic offences to the tune of Rs.316 crores and some odd and keeping in mind the fact that some of the co-accused are still at large avoiding their apprehension, this Court does not consider it proper to extend the benefit of bail to the petitioners. Hence, the bail applications of ..... 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