Thane Sessions Court Rejects Bail Plea Of Businessman Accused In ₹37 Crore GST Fake Invoice Fraud Case

Thane: The Thane Additional Sessions Court has rejected the bail plea of a businessman accused of orchestrating a massive Goods and Services Tax (GST) fraud involving fake invoices and fraudulent Input Tax Credit (ITC) claims worth nearly Rs 37 crore.

Bail Plea by Bharat Shivshankar Vyas

The bail application was filed by Bharat Shivshankar Vyas, proprietor of M/s Connect to Create, who was arrested by the GST Department on July 22, 2025, under various provisions of the Maharashtra Goods and Services Tax Act, 2017, and the Central Goods and Services Tax Act, 2017.

Fake Billing Racket Alleged

According to the prosecution, Vyas allegedly availed fraudulent ITC worth Rs 18.88 crore from five different companies during 2017-2019 and passed on ITC worth Rs 18.88 crore to four other registered taxable persons without any actual movement of goods. The authorities alleged that the accused was running a fake billing racket operating only on paper, thereby causing a huge loss to government revenue.

Arguments in Court

During the hearing, Vyas’s counsel argued that the arrest was illegal as the GST authorities failed to provide detailed reasons for the arrest and did not comply with procedural requirements under Section 69 of the GST Act.

Court’s Observations

However, the prosecution maintained that the arrest was legal and justified under the provisions of the Act. The court observed that the accused had failed to produce mandatory documents despite repeated notices and that the nature of the offence was serious, involving an economic fraud of a large magnitude. The judge noted that economic offences have severe repercussions on the development of the country.

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Bail Rejected

“The intention of the accused and his actions are clearly reflected in committing the offence. Considering the fact that the amount of ITC claimed runs into crores of rupees, the present offence is serious in nature. It has been held in a catena of decisions that economic offences have serious repercussions on the development of the country as a whole. Therefore, a prima facie case is made out against the present applicant. The investigation in the matter is in progress and the charge sheet has not yet been filed. If the applicant is released on bail, there is every possibility of his absconding and tampering with the prosecution’s evidence by destroying the same. Considering the facts of the case, the amount of tax evasion involved, and the serious nature of the offence, in my opinion, the accused is not entitled to bail,” the court’s order reads.