Latest news with #DGGI
Time of India
5 hours ago
- Time of India
HC slams officials of Directorate General of GST Intelligence over illegal detention, dodgy surveillance
Chandigarh: Virtually reprimanding the officials of the Directorate General of GST Intelligence (DGGI), the Punjab and Haryana high court found prima facie evidence that officials illegally detained a person overnight in violation of his constitutional rights. The court expressed serious concern over procedural lapses, obstruction of a court-appointed warrant officer, and the apparent disregard for fundamental liberties in a high-profile GST investigation. In its detailed order, Justice Harpreet Singh Brar observed that DGGI's actions were legally questionable and constitutionally untenable. The prolonged stay was deemed coercive, especially as the detainee was not free to leave, and his family had to approach the court for his release. Further rejecting the DGGI's claim that CCTV cameras were non-functional due to construction, the court noted that the explanation about faulty CCTVs appeared deliberate and evasive, as all the electronic and digital resources of the zonal office, including the E-office portal, were fully functional. The observations from the HC were made in the wake of a habeas corpus petition filed by Barkha Bansal, seeking the release of her husband Bharat Lal Garg, whom she alleged was unlawfully detained by DGGI officials starting June 4. "It is apparent that while DGGI officials put the detainee under restraint at 5:46 pm on June 5, they did not show any urgency in supplying the grounds of arrest to him. As such, the subsequent process of arrest and remand stands vitiated. Moreover, the DGGI officials also failed to supply the detainee with the 'reasons to believe' that he committed an offence under the CGST Act, necessitating his arrest. Such conduct is in clear violation of the ratio laid down by the Supreme Court in different cases and would therefore render the arrest of the detainee illegal and non est in the eyes of the law," the HC observed. The matter has now been fixed for July 30 for further consideration of the issue revolving around the obstruction caused to the warrant officer appointed by the HC, as well as for the release of the detainee in question. "The Additional Director General of Goods and Service Tax Intelligence, Chandigarh zonal unit, is directed to file an affidavit showing complete compliance with the directions issued by the Supreme Court in a 2021 case titled Paramvir Singh Saini versus Baljit Singh regarding operational CCTV cameras during interrogation and also to deliberate therein why the directions issued by this court on July 2 regarding the production of records have not been complied with," the HC observed in its order released on Wednesday. In this case, the HC on June 5 appointed a warrant officer to inspect the DRI office located in the Central Revenue Building, Sector 17, Chandigarh. The warrant officer, accompanied by local police, recovered the detainee from the premises of an IRS officer, where he was allegedly being held under guard by a departmental peon. Later, on July 2, the ADG (GST) was directed to file an affidavit naming all officials present during the incident and disclosing the status of CCTV installations, in line with the guidelines prescribed by the Supreme Court. Illegal Custody "The court does not find any justifiable reasons to condone keeping the detainee in the zonal office for over 30 hours. Curiously, a prima facie cognisable offence was yet to be made out against the detainee, and in spite of that, he was kept in the zonal office overnight and subjected to prolonged interrogation," said Justice Harpreet Singh Brar.
Indian Express
17 hours ago
- Indian Express
High court slams Chandigarh DGGI for ‘psychological coercion' in 30-hour detention of businessman
The Punjab and Haryana High Court has come down heavily on the Directorate General of Goods and Services Tax Intelligence (DGGI), Chandigarh, for holding a businessman in its zonal office for more than 30 hours in what it described as a case of 'psychological coercion', and for authorising his arrest 'without application of mind'. Justice Harpreet Singh Brar, in his order on petitions filed by Bharat Lal Garg and his wife Barkha Bansal, said the DGGI's claim that Garg remained in its office overnight on June 4 'of his own volition' was an 'illusionary choice'. 'When one is summoned to the office of a state-run agency and kept under constant watch, an atmosphere suggesting stepping out is not an option is created… the illusion of voluntariness renders any consent invalid,' the court said. Garg, a businessman, had been summoned to record his statement in connection with an ongoing investigation, during which data was extracted from his laptop for forensic analysis. The court noted that a cognisable offence had not been established at the time, rendering even consideration of his arrest 'premature'. The proposal to arrest him was moved only at 5.46 pm on June 5 and approved by the Additional Director General an hour later 'mechanically, without examining the material available' and without the mandatory Document Identification Number (DIN), making the authorisation 'deemed invalid'. The judge also pointed out that CCTV cameras at the zonal office were reportedly non-functional even though all other digital systems worked, calling the explanation 'incongruous'. Observing that Barkha Bansal had to approach the court to secure her husband's release, the judge stressed that statements of persons summoned must be recorded only during office hours and in the presence of their counsel if they so choose, with CCTV surveillance available on request. The additional director general of the DGGI, Chandigarh zonal unit, has been directed to file an affidavit before the next hearing showing full compliance with the Supreme Court's directions in Paramvir Singh Saini judgment, regarding the mandatory installation and maintenance of CCTV cameras in police stations, and to explain why the court's earlier order of July 2 seeking production of records was not complied with.
NDTV
11-07-2025
- Business
- NDTV
Rs 266-Crore GST Invoice Scam Busted, Mastermind Arrested
Bengaluru: In a major crackdown on tax fraud, the Directorate General of GST Intelligence (DGGI), Bengaluru Zonal Unit, has unearthed a massive fake invoicing racket involving six shell companies. The operation, carried out across multiple premises in Delhi, revealed fraudulent invoices of Rs 266 crore and illegal input tax credit claims amounting to Rs 48 crore. One of the masterminds behind the fraud has been arrested. The investigation, which stems from an ongoing case initiated in Bengaluru, found that the shell companies had no actual business activity and were set up with the sole purpose of generating fake invoices and engaging in circular trading to inflate turnover. One of these companies had even been listed on the stock exchange. According to officials, four of the companies were found to have claimed receipt of goods and services worth hundreds of crores despite having no physical operations. The trail led investigators to a key figure, a chartered accountant who had also served as a statutory auditor and director in several of the implicated entities. The individual is believed to have orchestrated the transactions, manipulated the shareholding patterns, and maintained control over the operations behind the scenes. Searches conducted at multiple locations yielded crucial evidence, including original invoices, company seals, and other incriminating documents - many of which were found in possession of the arrested mastermind. A DGGI official stated, "This fraud not only involves large-scale tax evasion but also has serious implications for investors, particularly in the listed company associated with this scheme." The DGGI Bengaluru unit has now launched a full-scale investigation to identify further linkages and potential accomplices. With fraudulent input tax credit claims becoming a recurring tactic among shell entities and listed companies, the DGGI has also shared specific intelligence with the Securities and Exchange Board of India for regulatory action.
Time of India
11-07-2025
- Business
- Time of India
DGGI officers uncover 6 shell companies issuing fraudulent invoices, Rs 48 crore fake IT claims
GST Intelligence wing DGGI has conducted searches on at least six premises in the city and uncovered fraudulent invoices worth Rs 266 crore and passing of fake ITC of Rs 48 crore from shell companies , the finance ministry said on Friday. Investigation in a case initiated in Bengaluru by the officers of Directorate General of GST Intelligence, Bengaluru Zonal Unit, said four companies, with no business activity, have shown receipt of hundreds of crores worth of goods and services. "The officers of Directorate General of GST Intelligence, Bengaluru Zonal Unit carried out searches in over six premises in Delhi, and uncovered fraudulent invoices worth over Rs 266 crore, involving availment and passing on of fraudulent Input Tax Credit (ITC) of Rs 48 crore from the shell companies," the statement said. The investigation indicated that initially, the key mastermind was one of the CA/statutory auditor, who managed the transactions of these companies. Further investigation revealed that the structure of entities and shareholding pattern, along with changes in the same, the CA/statutory auditor was acting as director in a few of these shell companies at some point of time -- clearly establishing the links behind the origin of the six shell companies. During searches on the premises of these companies, original documents, such as invoices and seals, were found in the premises of the mastermind. The key mastermind of the case has been arrested. Live Events "DGGI Bengaluru Zonal Unit has initiated a comprehensive investigation into this fraud, which has implications for innocent investors in listed companies. "Having found such pattern of GST frauds by use of circular trading and fake ITC by listed companies, DGGI has shared specific inputs with Sebi in the recent past for initiating action under the Sebi Act," the statement added.
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Business Standard
25-06-2025
- Business
- Business Standard
'Appeals in DGGI-led multi-state cases must be filed where CAA is posted'
The Central Board of Indirect Taxes and Customs (CBIC) has clarified that appeals against orders passed by Common Adjudicating Authorities (CAAs) in multi-state GST investigations by the Directorate General of GST Intelligence (DGGI) must be filed in the jurisdiction where the CAA is posted. The clarification, issued through a circular dated 24 June, addresses a key procedural gap in the earlier December 2024 circular, which had designated CAAs for adjudicating show-cause notices issued by DGGI but did not specify where appeals, reviews or revisions of such orders should be filed. 'This had led to confusion in cases where investigations were conducted across multiple states. For example, if the DGGI investigated a company in Mumbai, Kolkata and New Delhi, and the CAA was posted in New Delhi, it was unclear whether the appeal should be filed in Maharashtra, West Bengal or Delhi,' said Vivek Jalan, partner, Tax Connect Advisory Services. The new circular brings clarity by stating that all legal follow-up actions — including appeals, reviews and revisions — must be carried out within the jurisdiction of the Commissioner or Principal Commissioner under whom the CAA functions. Appeals will lie with the Commissioner (Appeals) of the same jurisdiction, and the department's representation will also come from that Commissionerate. Further, the reviewing or revisional authority may seek inputs from the relevant DGGI formation before deciding on the order. The clarification is aimed at ensuring consistency and avoiding jurisdictional disputes in DGGI-led proceedings where a CAA has been appointed. Field officers have been instructed to issue trade notices to disseminate the circular, and any challenges in its implementation are to be reported to the Board.
