New Delhi, May 8 (PTI) A Delhi court on Friday dismissed the anticipatory bail plea of a government official accused by the anti corruption bureau of causing a loss of over Rs 5.5 crore to the government exchequer through illegal GST refunds.

Special Judge (PC Act) Ruchi Aggarwal Asrani was hearing the anticipatory bail of Himanshu Malik.

According to the prosecution, Malik, a lower division clerk (LDC) in the Department of Trade & Taxes at Vyapar Bhawan here, was complicit in a well-hatched conspiracy with others to facilitate the processing and approval of 61 GST refund orders to firm M/s Regional Trading, and that these refunds were processed in violation of the provisions and prevalent procedures of the GST Act and related regulations.

It said that the fraudulent activities of M/s Regional Trading facilitated by Malik, along with Atal Bhardwaj, GSTI and Ajit Singh, GSTO, in a well-hatched conspiracy with public persons/firms, resulted in a financial loss of Rs 5.5 crores to the government exchequer through illegal GST refunds.

The court said, “The offence in question is serious. It involves abuse of an official position by a government servant for the benefit of certain private persons and himself.” Noting the submission of Malik’s counsel, the judge said, “This court finds it strange to an extent of (being) unacceptable that M/s Regional Trading transferred a particular amount of money (Rs 25 lakh) to M/s Arki, which further transferred an amount to M/s Uflix, which transferred it to the account of the parents of the applicant (Malik) just a couple of months after M/s Regional Trading received the alleged illegal GST refunds.” Regarding the argument that it was a “friendly loan”, the judge said that it had been given from a company account and not a personal account, and besides, there was no loan agreement.

“Since the factum of transfer of Rs 25 lakh has been admitted on behalf of the applicant, this court finds sufficient reasons to believe that the applicant needs to be interrogated to unearth the truth about the funds received through illegal GST refunds.” “It is also the case of the state that they need to conduct custodial interrogation of the accused to confront the applicant with the bank records, recover his mobile phone and digital signatures and find out the full extent of the conspiracy and financial network and the role of other connected persons,” the judge said, dismissing the plea. PTI MNR MNR NB NB

Anticipatory bail in alleged GST refund fraud denied after suspicious fund transfers and need for custodial interrogation. Anticipatory bail in an alleged GST refund fraud case was declined to a government clerk accused of facilitating illegal GST refunds through a conspiracy involving private entities and public officials. The court treated the offence as serious, noted suspicious fund transfers linked to the applicant's family accounts, and rejected the explanation of a friendly loan in the absence of a loan agreement. Custodial interrogation was considered necessary to trace the funds, examine bank records, recover digital material, and uncover the wider conspiracy.