GST Fraud: Orissa High Court grants bail to GST Fraud Mastermind

The Orissa High Court granted bail to Nitin Kapoor on Thursday, the alleged mastermind of the multi-crore GST fraud that was discovered in the state in July this year.

The scam included illegal export benefit claims, fraudulent Input Tax Credits of Rs. 267 crore, and fake export transaction representations, culminating in a Rs. 16.4 crore fraudulent refund via 111 fake GST Identification Numbers (GSTINs).

The single judge bench of Justice M S Sahoo granted the bail subject to stringent terms and conditions that would be imposed by the trial court after hearing the state counsel and Kapoor’s counsel.

Kapoor moved to the high court after his bail application was denied by an additional sessions judge court in Bhubaneswar on August 22, 2023.

The government of the state submitted before the HC that denying bail is necessary to ensure an unhindered investigation. According to the testimonies of the defendants, the petitioner is the mastermind behind the entire plan.

Because the alleged offence is the act of crediting the amount of ITC through the departmental online system to the account of certain entities that have been alleged to be non-existent, and the money has subsequently been received by the petitioner, the evidence tendered by the opposing party/complainant would essentially be documentary and electronic, according to Justice Sahoo.

Hence, on the basis of the above conclusion, the bail was granted to the accused by the High Court.