2026:CGHC:12763 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR MCRC No. 1975 of 2026 Vikram Mandhani S/o Late Rajesh Mandhani Aged About 28 Years R/o Block C-2, Flat No. 102, Golden Tower, Amlidih, Raipur, District Raipur C.G.

... Applicant versus Union of India Through The Senior Intelligence Officer, Directorate General Of G.S.T. Intelligence (D G G I), Zonal Unit, Raipur, District Raipur C.G.

... Non-applicant For Applicant : Mr. Virat Verma, Advocate For Non-applicant/UOI : Mr. Maneesh Sharma, Advocate Hon'ble Shri Ramesh Sinha , Chief Justice

Order on Board

17.03.2026

1. The applicant has preferred this First Bail Application under Section

483 of The Bharatiya Nagarik Suraksha Sanhita (BNSS) for grant of regular bail, as he has been arrested in connection with Crime No. AD2212250057378B, dated 20.12.2025, Department- DGGI Zonal Unit Raipur, District – Raipur (C.G.), Police Station- Directorate General of Intelligence GST, Raipur, District- Raipur (C.G.) for the offence punishable under Sections 31(1), 35, 132 (1)(b) of CGST RAHUL DEWANGAN Act, 2017.

Digitally signed by RAHUL DEWANGAN

2. The case of the prosecution, in brief, is that the applicant has committed an offence by issuing fake invoices amounting to ₹8,57,15,507/- and fraudulently availing Input Tax Credit (ITC). In the present case, the Department conducted an investigation into M/s Prem Enterprises, a firm registered for the trade of steel goods, particularly examining its bank chain (supplier firms), including M/s Harendra Traders, M/s Modern Ventures, and M/s N.K. Enterprises. During the course of investigation, it was found that the applicant, in connivance with co-accused Aman Kumar Agrawal, was involved in the alleged activities, and from their possession, data retrieved from mobile phones revealed various Aadhaar cards, PAN cards, and SIM cards belonging to different individuals. It was further revealed that the applicant/accused was operating the email IDs declared in the names of such fake firms. Additionally, login credentials of GST and E-way bill portals relating to approximately 60 fictitious firms were also found. The investigation further indicates that, in order to lend a semblance of genuineness to the bogus transactions carried out through these fake firms, the amounts reflected in the fake invoices were routed through banking channels. Thus, although the applicant/accused is not the proprietor of M/s Prem Enterprises, he is alleged to have acted in concert with its proprietor, Aman Kumar Agrawal, in issuing bogus invoices in the names of fictitious firms and fraudulently availing ITC to the extent of approximately ₹8.57 crores, thereby deriving undue financial gain, hence, the present bail application.

3. Learned counsel for the applicant submits that the applicant is innocent and has been falsely implicated in the present case, having no connection whatsoever with the alleged offence. It is contended that the essential ingredients of Section 132(1) of the CGST Act are not satisfied in the present case, as there is no material to show that the applicant has retained or derived any benefit from the alleged transactions, which is a sine qua non for attracting criminal liability under the said provision. Even as per the prosecution case, the alleged benefit, if any, is attributable solely to co-accused Aman Kumar Agrawal, thereby demolishing the very foundation of the case against the applicant. It is further submitted that the offence, being primarily of a fiscal and semi-civil nature, has already been subjected to recovery proceedings under the GST Act, and therefore, custodial detention of the applicant is unwarranted. The applicant has been in jail since 20.12.2025, the charge sheet has already been filed, and the trial is yet to commence, making further incarceration unjustified.

4. It is further submitted that the investigation suffers from grave procedural irregularities and is vitiated by selective and biased prosecution. The GST Department has faile