Journalist Denied Bail in GST Fraud Case as Court Highlights Economic Offence Severity

A court in Ahmedabad has refused to grant bail to a journalist accused of involvement in a Goods and Services Tax (GST) fraud case, citing the serious nature of the charges and their impact on the nation’s economy. The Additional Sessions Judge observed that the journalist had allegedly fraudulently obtained GST credits worth Rs 6,61,416 and thus did not qualify for bail.

The court emphasized that economic offences require a distinct approach in bail matters due to their far-reaching effects on public finances and the country’s development. It was stated that such crimes, often involving complex conspiracies, cause substantial financial losses to the public exchequer and should be treated with gravity.

The judge further noted the alarming rise in white-collar crimes in recent years, which has disrupted the economic structure of the country. Economic offences, it was added, have significant repercussions on the nation’s progress and must be addressed with strict scrutiny.

Previously, on October 30, a lower court had also denied bail, citing prima facie evidence of the journalist’s alleged role in conspiring to defraud the government. Concerns were raised about the potential tampering with evidence if bail was granted.

The journalist has been in custody since October after being implicated in an alleged GST scam. The first FIR in the case was lodged on October 7 by the Ahmedabad Crime Branch, based on a complaint from the Central GST authorities. A second FIR was filed on October 23 in Gandhinagar after the recovery of documents related to the Gujarat Maritime Board.

According to details from the investigation, the case also involves Dhruvi Enterprises, a shell company, and 12 other associated entities. Authorities revealed that these companies used fake bills to fraudulently claim input tax credits, thereby evading GST payments. Investigators also discovered that similar credentials, including mobile numbers and PAN cards, were used to create 220 more suspected shell companies.

As part of the inquiry, searches were conducted across 19 locations in districts such as Bhavnagar, Surat, Junagadh, Rajkot, and Ahmedabad. Law enforcement reported seizing 29 computers, 38 mobile phones, seven laptops, and various documents, all of which have been sent for forensic analysis. The investigation is ongoing to uncover further details about the extent of the alleged fraud.

This case underscores the growing concerns over economic offences and their detrimental impact on the country’s financial framework. The authorities are committed to pursuing the matter with the seriousness it warrants.