Amit Mehra Vs Union of India (Supreme Court of India)
The Supreme Court considered a petition challenging the denial of regular bail in a case arising from proceedings initiated by the Directorate General of GST Intelligence for alleged offences under the Central Goods and Services Tax Act, 2017, the GST Act, 2017 and the IGST Act, 2017. The petitioner had earlier sought regular bail before the Punjab and Haryana High Court, which was rejected.
Before the High Court, the prosecution alleged that the petitioner was involved in a large-scale GST fraud through the creation and operation of multiple non-existent firms. According to the investigation, goods-less invoices were generated to facilitate fraudulent Input Tax Credit. Searches were conducted at various premises, including the residence of the petitioner and his accountant, leading to recovery of electronic devices, cheque books and stamps. Statements recorded during investigation allegedly showed that the petitioner admitted to operating bogus firms, issuing fake invoices and charging commission. The investigation later expanded to allege that the petitioner operated as many as 44 bogus firms, generating invoices running into thousands of crores and facilitating fake ITC amounting to over ₹300 crores.
The petitioner argued before the High Court that there was no direct evidence linking him to the beneficiary firms or issuance of invoices, that digital trails had not been properly investigated, that all relevant records were already in the custody of the authorities, and that continued custody served no useful purpose. The Union of India opposed bail, contending that the petitioner was the mastermind behind a deep-rooted conspiracy involving huge loss to the public exchequer, that evidence including financial trails and electronic communications corroborated his role, and that his release could affect the ongoing investigation.
