In a recent decision by the Gauhati High Court, anticipatory bail was granted to Faiz Ahmed in a case involving fake GST invoices. The case stemmed from an FIR filed by the CGST Anti-Evasion Wing in Itanagar, accusing a firm of obtaining GST registration through fraudulent means and issuing fake invoices worth ₹658.25 crore, leading to fraudulent ITC claims of ₹99.31 crore. Faiz Ahmed was alleged to have connections with the main accused, Ashutosh Kumar Jha, who orchestrated the scheme.
Ahmed, however, maintained that he was an independent businessman who regularly paid GST and only had professional interactions with Jha. He cooperated with the investigation, and the prosecution acknowledged that his statements matched his bank and WhatsApp records, indicating no need for custodial interrogation. The issue before the court was whether Ahmed, given his cooperation and corroborating evidence, deserved anticipatory bail in this large-scale fraud case.
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The court noted that while the investigation uncovered a larger conspiracy by Jha involving multiple fictitious firms, there was no evidence of Ahmed’s active participation. Given his cooperation and the lack of necessity for custodial interrogation, the court saw no reason for his arrest. Consequently, the interim pre-arrest bail initially granted was made permanent, with the condition that Ahmed continues to assist in the ongoing investigation. The anticipatory bail application was thus resolved, emphasizing the applicant's obligation to remain cooperative.
Order Date: 21 October 2025
Case Title: Faiz Ahmed v. State of Arunachal Pradesh
Facts:
- The case arose from an FIR dated 03.10.2024 filed by CGST Anti-Evasion Wing, Itanagar, alleging that a firm named M/s Siddhi Vinayak Trade Merchants obtained a GST registration using forged rent agreements, fake JMFC seals, PAN, Aadhaar, and electricity bills, and issued fake invoices worth ₹658.25 crore, passing fraudulent ITC of ₹99.31 crore.
- The applicant, Faiz Ahmed, was alleged to have links with the prime accused, Ashutosh Kumar Jha, who masterminded the fraud.
- The applicant contended that he was an independent businessman, regularly paying GST, and had only professional communication with the said Jha. He appeared before the investigating officer, cooperated in the inquiry, and had no criminal antecedents.
- The prosecution admitted that the applicant’s statement under Section 180 of the BNSS, 2023 corroborated his bank and WhatsApp records and that custodial interrogation was not required.
Issue:
- Whether the applicant, who cooperated in the investigation and whose statement corroborated with record evidence, was entitled to anticipatory bail in a large-scale GST fake invoice fraud case?
Order:
- The Court observed that while the investigation revealed a wider conspiracy led by Ashutosh Kumar Jha involving multiple fictitious firms, there was no material indicating the applicant’s active involvement.
- Considering that the applicant had appeared before the IO, provided full cooperation, and that custodial interrogation was unnecessary, the Court found no ground for his arrest.
- Accordingly, the interim pre-arrest bail granted on 17.09.2025 was made absolute under the same terms and conditions.
- The anticipatory bail application was disposed of, directing the applicant to continue cooperating with the investigation.
