₹730-Crore GST Scam: Court Denies Bail to Jamshedpur Businessman

Jamshedpur: The bail plea of city-based businessman Vicky Bhalotia, alias Amit Agarwal, was rejected by a special Prevention of Money Laundering Act (PMLA) court in Ranchi on Monday. Bhalotia, a resident of the Jugsalai area in Jamshedpur, is a key accused in a massive Goods and Services Tax (GST) scam estimated to involve nearly ₹730 crore.

The special court delivered its verdict after hearing arguments from both the defence and the prosecution. Bhalotia had approached the court for relief, filing his bail application on May 6. However, considering the gravity of the financial fraud, the court chose to deny the petition.

Modus Operandi: 90+ Shell Companies Network

The investigation, being spearheaded by the Enforcement Directorate (ED), centres around a financial scam. According to ED sources, the accused individuals allegedly generated fake invoices and bills worth a staggering ₹14,325 crore.

These transactions were channelled through a network of more than 90 shell companies. By fabricating input tax entries through these dummy corporate entities, the syndicate successfully made ineligible and fraudulent claims exceeding ₹730 crore, causing massive revenue losses to the government exchequer.

Wide Enforcement Crackdown

The Enforcement Directorate initiated its money laundering probe following actions taken by the Directorate General of GST Intelligence (DGGI). The original case was registered based on an official statement by GST officer Dinesh Singh, which subsequently led to the arrests of several high-profile businessmen.

Alongside Vicky Bhalotia, the ED has previously arrested other prominent members of the alleged syndicate, including Shiv Kumar Devda, Mohit Devda, Sumit Gupta, and Kolkata-based businessman Amit Gupta. Investigators revealed that a significant faction of the operation operated directly out of Jamshedpur.

With the PMLA court taking a stern view of the corporate fraud and rejecting the bail plea, the Enforcement Directorate is expected to accelerate its legal proceedings and further expose the network of shell companies utilized to siphon public funds.