The in question FIR was lodged at the instance of ASI Vinod Kumar alleged that on 4.6.2019 when he along with other police officials was present near grain market bridge to patrol, at that instance a piece of secret information was received that Rajesh Mittal, Inder Partap Singh, and Manish make bogus firms and by transacting with bigger firms, they are getting huge amounts of money deposited in the account numbers of fake bogus firms to save GST and are thus causing huge loss to the State Exchequer on account of loss of revenue.
The police swung into action according to receipt of aforesaid information and were able to apprehend the aforesaid accused Rajesh Mittal, Inder Pratap Singh, and Manish.
Throughout the investigation, it further surfaced that the said 18 non-functional firms had issued bills in favor of 421 different industries based in Panipat and to reflect expenditure in respect of their manufacturing processes and to lend credibility to their so-called purchase of yarn made banking transactions in favor of said 18 firms. The amount transferred through banking transactions used to be withdrawn from the bank accounts of the said firms given back to those industries retaining some percentage. Thus, in this manner, the industries of Panipat without actually incurring expenditure used to reflect expenditure in their accounts and also used to evade payment of a substantial amount of GST on the premises that the initial supplier that is M/s Lalit Trading Company had already charged the GST. The mastermind behind this entire racket was found to be Rajesh Mittal who used the name of the firm M/s Lalit Trading Company for the issuance of bogus bills in favor of 18 firms created and registered by him with the help of some ordinary persons (non-businessmen) to show transactions and the said 18 firms further reflected transactions with 421 industries of Panipat. The loss of revenue in terms of GST was assessed at about 80 crores.
Held by High Court
Rajesh Mittal played a pivotal role in the entire scam to incorporate 18 different firms, wherein his e-mail ID or phone number had been used in the majority of firms. During the investigation, the police were able to collect evidence to the effect that bank transactions of withdrawal of Rs. 1,21,17,230/- was made in the account of M/s Ansh Hospitality between 23.1.2019 and 30.6.2019 and an amount of Rs. 1,21,21,881/- was deposited and for which the learned counsel representing Manish, owner of the said firm, could not furnish any justification as to on what count the said huge payments had been received and as to what articles had been supplied by him against the said payment. Similarly, during the investigation, it was found that bank transactions of the huge amount had been effected in the account of M/s Shree Bala Ji Wooltax. The learned counsel for the petitioner-Inder Partap Singh, owner of M/s Shree Bala Ji Wooltax, could not furnish any justifiable explanation as to on what count the said payment has been received, as the said firm was not found to be actually into business. The learned State counsel has informed that during an investigation this fact had been confirmed that the aforesaid firms were not into business and that the amounts so received in their bank accounts had been withdrawn immediately and had gone back to the industries which had made the said banking transactions.
Given the aforesaid discussion, the complicity of the kingpin Rajesh Mittal and also of Manish, owner of M/s Ansh Hospitality, and petitioner Inder Partap Singh, owner of M/s Shree Bala Ji Wooltax, is evident. Keeping in view the enormity of the scam and the colossal loss caused to the State exchequer, which has lost GST, this Court does not find any ground for grant of bail. The petitions on their behalf, as such, are dismissed. As far as the petitioner Satnarain is concerned, it is not disputed that he is an Advocate by profession. It appears that he had rendered his professional services and assistance for the incorporation of the firms. At this stage, it cannot be said that he had joined hands with Rajesh Mittal or as the beneficiary of any amount other than his professional fee. In any case, since he has already been behind bars for the last about 8 months, his further detention will not serve any useful purpose. The petition on his behalf, as such, is accepted and the petitioner-Satnarain is ordered to be released on regular bail on his furnishing bail bonds/surety bonds to the satisfaction of learned trial Court/Chief Judicial Magistrate/Duty Magistrate concerned.