High Court Grants Bail to Accused in Rs 15.83 Crore GST ITC Fraud Case

The Jharkhand High Court has granted bail to Harshvardhan, who was arrested in connection with an alleged GST fraud involving wrongful availment and utilisation of Input Tax Credit (ITC) worth Rs 15.83 crore.

In the past, a Complaint Case No. 391 of 2026 was registered against the petitioner for the offences punishable under sections 132(1) (c)/132(1) (f)/312 (1) (l)/132(5) of the Central Goods and Services Tax Act, 2017. According to the registered complaint and the Directorate General of GST Intelligence (DGGI), the petitioner, being the husband and power of attorney holder of the proprietor of M/s Raghupati Steel Traders, was accused of availing and utilising the input tax credit (ITC) of Rs 15.83 crores.

The petitioner argued that the tax authorities had shown a sum of Rs 11 crores and odd as cess without the proof of manufacture of zarda, and according to him, this has been done merely to indicate the project value exceeding Rs 15 crores. In support of his case, the petitioner cited the earlier Hon’ble Supreme Court of India‘s ruling in the case titled Ratnambar Kaushik vs. Union of India, based on an identical issue, where bail was granted considering the nature of the evidence and the period of incarceration.

The petitioner also gave assurance to the Honourable High Court that he would cooperate with the trial and would not interfere with witnesses or the investigation. When the court heard both sides, it noted that the petitioner had remained in custody for more than four months and that the evidence in the case was mainly in documents. Considering these factors, the court allowed the petitioner’s bail application.

The court has ruled that Harshvardhan be released on bail, subject to furnishing a bail bond of Rs 5 lakh along with two sureties of the same amount. He has also been directed to cooperate with the trial, provide his mobile number and Aadhaar card details to the trial court, and refrain from influencing or disturbing any witnesses during the proceedings.

Honourable Justice Anil Kumar Choudhary has ruled that “I am inclined to enlarge the abovenamed petitioner to bail. Accordingly, the petitioner is directed to be released on bail on furnishing bail bond of Rs. 5,00,000/- (Rupees Five Lakhs) with two sureties of the like amount each to the satisfaction of learned Special Judge, Economic Offences, Jamshedpur, in connection with Complaint Case No. 391 of 2026 with the condition that the petitioner will cooperate with the trial of the case and will furnish his mobile number and a copy of his Aadhar Card in the court.”