GST Fraud: Bail granted to 3 Shemaroo Officials alleged for fraud of Rs.70.25 Crore

The Central Goods and Services Tax (CGST) department has detained three Shemaroo Entertainment employees on Thursday, including CEO Hiran Gada, joint managing director Atul Maru, and chief financial officer Amit Haria, for illegally claiming Rs.70.25 crore in Input Tax Credit (ITC). They were eventually released on bond.

The ITC was received based on invoices rather than actual receipt of goods or services. Jhaverchand Soni, a Shemaroo Entertainment partner, told authorities that he was only compensated for signing documents.

Soni stated that he and his wife signed, and that Atul Maru used to manage and operate his bank accounts. Maru, Gada, and Haria admitted to receiving ITC without providing any goods or services. The trio was brought before the 19th Metropolitan Magistrates Court for remand.

The defence claimed that the agency unlawfully kept them for more than 24 hours without bringing them before the court. The claim was denied by the public prosecutor. The court rejected custody and permitted them to leave.