Indian High Courts grant bail in separate GST fraud investigations

The Delhi High Court has granted anticipatory bail to the directors of M/s KMG Industrial Traders Pvt. Ltd. following an investigation into the alleged fraudulent availment of Input Tax Credit (ITC) totaling ₹22.42 crore. The Directorate General of GST Intelligence alleged that the credit was claimed using invoices from entities allegedly controlled by Sanjay and Gulshan Dhingra, without the actual movement of goods.

The petitioners argued they were bona fide purchasers who maintained proper documentation, including weighbridge slips and bank statements, and noted that ₹2.5 crore had already been deposited with the Department. They also highlighted that the principal accused persons had previously been granted regular bail.

In a separate matter, the Allahabad High Court granted bail to an individual accused of involvement in the forgery and fraudulent procurement of GST registrations. The court noted that the accused was not named in the First Information Report (FIR) and that the mobile phone and SIM card used by the prosecution to establish involvement did not belong to the applicant.