Mumbai, Maharashtra – August 30, 2022 – Amanpuneet Singh Kohli, a director of seven companies, has been granted bail by the Sessions Court for Greater Mumbai in a case involving alleged fraudulent availing of Input Tax Credit (ITC) worth Rs. 35.11 crores. The court, presided over by Additional Sessions Judge Shri A.A. Kulkarni, granted bail, citing Kohli’s prolonged judicial custody and the availability of electronic records related to the ITC claims.

Kohli was arrested by the Directorate General of Goods & Services Tax Intelligence (DGGI), Zonal Unit, Mumbai, and was charged with availing fraudulent ITC without receiving actual goods or services.

Accusations and Defense:

The prosecution alleged that Kohli, as the director of seven companies, fraudulently availed ITC worth Rs. 35.11 crores using non-existent supplier firms. They argued that Kohli utilized this fraudulent ITC for further payments, causing significant financial loss.

Kohli, represented by Advocate Ravi Hirani, claimed that he was falsely implicated in the case. He argued that he had been in judicial custody for a year in connection with the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act (COFEPOSA). He also stated that he had cooperated with the DGGI during five separate recorded statements.

Kohli asserted that he was neither the manager nor the proprietor of the seven firms mentioned by the prosecution. He argued that the ITC claims were based on information provided by suppliers and that he had no knowledge of any non-existent firms. He reiterated his willingness to cooperate with the investigation and argued that his continued detention would serve no purpose.

Prosecution’s Counter-Arguments:

The prosecution, represented by SPP Mr. Natrajan, opposed the bail application. They argued that Kohli had fraudulently availed ITC in the name of fourteen companies, and the supplier records provided by him were fake. They contended that Kohli had committed a serious economic offense and should not be granted bail.

Court’s Observations and Decision:

Judge Kulkarni, after considering the arguments and reviewing the documents, noted that Kohli had been in judicial custody for a year. The court emphasized that the entire record of the ITC availed by Kohli was available in electronic form with the DGGI and that the agency could collect further evidence through its own sources.

The court concluded that Kohli’s indefinite detention was unnecessary for the investigation and that he was entitled to bail, subject to certain conditions.

Bail Conditions:

The court granted bail to Kohli, subject to the following conditions:

• Kohli must furnish a Personal Recognizance (P.R.) bond of Rs. 10,00,000/- along with one or two sureties of the same amount.
• He must attend the DGGI, Zonal Unit, Mumbai, office as and when required by the investigating officer.
• He must provide his residential address proof and contact numbers to the investigating officer.
• He must not directly or indirectly influence any person acquainted with the case.
• He must not leave India without prior permission from the court.
• The bail must be furnished before the lower court.

Outcome:

The court’s decision highlights the importance of balancing the need for investigation with an individual’s right to liberty. The court’s focus on the availability of electronic evidence and the prolonged detention of the accused played a significant role in granting bail. The imposed conditions aim to ensure Kohli’s cooperation with the investigation and prevent any potential obstruction of justice.