DIRECTOR OF TWINSTAR INDUSTRIES- SC STAYS BAIL CONDITION TO PAY RS 122 CRORE

4th March

In January, the Directorate general of goods and services tax had arrested a 64-year-old businessman and director of Twinstar Industries and Originet Technologies for an alleged fraud of Rs 122 Cr.

It has been alleged that his companies fraudulently availed bogus invoices without an actual receipt and utilized ineligible input tax credit of Rs 122 cr based on those bogus invoices. On Thursday, the Supreme Court issued a  notice in an appeal filed by the businessman Mehta, who challenged the bail condition imposed on him by the Bombay High Court, directing him to pay Rs 25 Crore for his release on bail.  Mehta, in his plea, contended that such harsh conditions were imposed by the Bombay High Court even though he has already served 26 days in Custody and that his company is not liable to pay any GST as it is only liable when goods are actually supplied.

The Supreme Court bench issued a notice in the appeal but stayed the bail condition that directed Rs 10 Crore and Rs 15 Crore's payment. The bench also stated that his “arrest was not justified”.

Author: Papiha Ghoshal