The Punjab and Haryana High Court has granted regular bail to petitioners Amit Kumar Goyal and Manish Kumar in connection with a massive tax fraud involving fake GST invoices worth ₹700 crore and wrongful input tax credit claims of ₹107 crore. The order was passed by Justice Harpreet Singh Brar, addressing two petitions CRM-M-8675-2025 and CRM-M-14956-2025.
The case stems from investigations led by the Directorate General of GST Intelligence (DGGI), Ludhiana, which uncovered the creation of 27 fake firms allegedly by the petitioners. Two firms were registered under Amit Kumar Goyal’s name, and the rest were linked via identity fraud. Substantial cash withdrawals totaling ₹717 crore were made from multiple accounts — ₹262 crore by Amit and ₹455 crore by Manish.
Read also:- Kollam Bar Association Election Dispute: Kerala High Court Issues Notice on Plea
Authorities also recovered electronic devices, forged documents, chequebooks, and IDs during raids conducted in October 2024. The prosecution alleged that no goods were actually traded, and that the firms only existed on paper to fraudulently claim tax credits.
“The petitioners created multiple fictitious entities to defraud the exchequer,” the counsel for the respondent argued, highlighting the risk of tampering with evidence if bail was granted.
In contrast, the defense claimed that the arrest was made without proper compliance under Sections 73 and 74 of the CGST Act, and that the petitioners had been in custody since October 2024 with no progress in trial. They further cited that the prosecution relied entirely on electronic and documentary evidence, all of which had already been collected.
Read also:- Bombay High Court Upholds Arbitral Award Against Shriram EPC Ltd. in Dispute with Parker-Hannifin India
“The trial is stagnant. Investigation is complete. Detaining the petitioners further serves no purpose,” the defense counsel contended.
Justice Brar noted systemic delays in trial proceedings, with only one conviction recorded in CGST Act cases across Punjab, Haryana, and Chandigarh since 2017. He expressed concern over arrest-first tendencies of investigating agencies and emphasized the right to a speedy trial under Article 21 of the Constitution.
Read also:- Delhi High Court Quashes FIR in 498A/406/34 IPC Case After Mutual Settlement
“The criminal justice process appears to begin with arrest and end with bail in these cases, without any real progress in the trial,” the court observed.
The Court highlighted that while economic offences are serious, they must not override constitutional protections. It noted that the petitioners had no prior criminal records and had cooperated throughout the investigation.
Accordingly, the Court granted bail with conditions, including surrendering passports, non-interference in trial, and a bar on disposing of any assets involved in the case.
Case Title: Manish Kumar & Amit Kumar Goyal vs. Directorate General, Goods & Services Tax Intelligence, Zonal Unit, Ludhiana
Case Numbers:
- CRM-M-8675-2025 (O&M) — Manish Kumar
- CRM-M-14956-2025 (O&M) — Amit Kumar Goyal