Businessman Denied Pre-Arrest Bail in Rs 13 Crore GST Fraud Case, Allegations of Official Involvement Trigger Investigation
Ritesh Garg, a businessman, has been refused pre-arrest bail by a local court in connection with a Rs 13 crore GST fraud case. The court expressed suspicions of government officials’ involvement in the fraud and emphasized the need for a thorough investigation. The fraudulent activities came to light during an inspection in 2021, leading to a subsequent police inquiry. In April, Vikas was arrested and, in his disclosure statement, identified Ritesh Garg as a key figure in the fraud.
Last week, Garg applied for bail, contending that he was not named in the First Information Report (FIR) and that no specific actions were attributed to him. He also conveyed his willingness to cooperate with the investigation. However, the public prosecutor opposed the bail plea, asserting that Garg’s custody was essential for gathering further evidence and recovering the embezzled funds, as he was suspected to be the mastermind behind the fraud.
The case involves allegations of criminal conspiracy, cheating, forgery, and using forged documents as genuine. The complaint, filed by the excise and taxation officer of Gurgaon (north) in December 2021, accuses King Enterprise, established in December 2014, of making false Input Tax Credit (ITC) claims and misusing ‘C’ forms, resulting in a revenue loss of Rs 13.3 crore.
The investigation uncovered that King Enterprise conducted fictitious purchases and fraudulently claimed ITC amounting to Rs 11.6 crore. The company also passed on the fraudulent ITC to several other firms, totaling Rs 6.4 crore. Additionally, the company’s registered address was found to be non-existent, and the registration was based on fabricated documents.
According to the public prosecutor, the firm’s linked account was jointly held by Bimla Devi and Vikas. Moreover, the mobile number registered with the firm’s email ID was under the name of Sunny Garg, Ritesh Garg’s brother. Further inquiry revealed that RK Trading, owned by Ritesh Garg, had provided the surety when King Enterprise was registered.
Ritesh Garg and Sunny Garg are alleged to have fabricated rent agreements, voter cards, and other documents. Additional sessions judge Jagdeep Singh denied bail to the accused on June 14, stating that the involvement of public servants in the registration of a non-existent firm could not be ruled out, emphasizing the necessity for a comprehensive investigation.