Ishwar Lal v. Additional Assistant Director,
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 13.10.2025
CORAM
THE HONOURABLE MR. JUSTICE K.RAJASEKAR Ishwar Lal ... Petitioner Vs.
Additional Assistant Director, DGGI, Coimbatore Zonal Unit, 155-1, Lakshmanan Street, Ukkadam, Coimbatore - 641 001.
... Respondent PRAYER : Criminal Original Petition filed under Section 482 of Bharatiya Nagarik Suraksha Sanhita, 2023, to enlarge the petitioner on anticipatory bail in the event of his arrest in Crime No.Not Unknown of 2025 on the file of the respondent police.
For Petitioner :
Mr.S.Sathyanarayanan For Respondent :
Mr.M.Sheela Special Public Prosecutor 1/6
O R D E R
The petitioner herein apprehends arrest at the hands of the respondent police for the offence punishable under Section 482 of BNSS, in Crime No.Not Known of 2025, on the file of the respondent Police, seeks anticipatory bail.
2. The case of the prosecution is that based on intelligence, an investigation was initiated against M/s.Naklank Enterprises and during investigation it revealed that it's suppliers were non-existent in entities, generated and passed on fake Input Tax Credit (ITC) to 25 other units (Level-2 units) without any actual supply of goods. Further, it revealed that some of these Level-2 units passed on ineligible ITC to three firms (Level-3 units), namely M/s.Parth Steel Alloys, M/s.Jay Enterprises, and M/s.Dhanlaxmi Trading. It was discovered that the petitioner herein was managing and handling these three firms for the purpose of availing and passing on ITC and it is also revealed that major outward supply from these three firms converged to a fourth entity, M/s.Shri Ram Alloys (Level-4 Unit), where the petitioner is involved in management and a search operation was conducted on 11.08.2025 at the premises of all four units. Based on search, it was found that the petitioner along with another accused managed three 2/6
dummy firms (M/s.Parth Steel Alloys, M/s.Jay Enterprises, and M/s.Dhanlaxmi Trading) from the premises of M/s.Shri Ram Alloys. The proprietors of these three firms-Shri Narendra Kumar, Shri Ashok Kumar, and Shri Subhash Ram were found to be labourers, staff and cooks working at M/s.Shri Ram Alloys. Further, voluntary statements were also recorded and revealed that the petitioner controlled all business operations, including the generation of invoices and e-way bills and all banking transactions, used the mobile app "Gimbooks" to generate fake invoices. Based on the statements recorded from the petitioner dated 11.08.2025 and 13.08.2025, it revealed that the petitioner had fraudulently availed ineligible ITC amounting to Rs.10.41 Crores and has passed on ineligible ITC of Rs.9.35 Crores and totally quantified as Rs.19.76 Crores. Hence, the present complaint has been registered.
3. The learned counsel for the petitioner submitted that the petitioner has no involvement in any of the entitites referred to in the complaint. He further submitted that only his wife's firm, namely, M/s.Shri Ram Alloys, is concerned in this case, and that the said firm is engaged in business transactions with the Jindal Group alone. It was further submitted that there 3/6
is no allegation of having availed any ineligible Input Tax Credit (ITC) by the Jindal Group, and there is no adverse statement made by them against the petitioner.
4. I have also gone through the various statements recorded from the persons who had dealings with the firms involved, as well as from one of the arrested accused, namely Shri Mukesh Kumar, who is the brother-in-law of the petitioner. He has categorically stated that the petitioner was actively involved in the operations of the various firms and in the fabrication of ITCrelated transactions.
5. This Court earlier dismissed the bail application filed by Mukesh Kumar in Crl.O.P.No.27608 of 2025 dated 10.10.2025, and this petitioner is also actively involved in operation of various firms, and investigation is pending in early stage hence, custodial interrogation of the petitioner is necessary.
6. Accordingly, this criminal original petition stands dismissed. 13.10.2025 cda 4/6
To 1.The Additional Assistant Director, DGGI, Coimbatore Zonal Unit, 155-1, Lakshmanan Street, Ukkadam, Coimbatore - 641 001.
2.The Public Prosecutor, High Court of Madras.
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K.RAJASEKAR, J.
cda 13.10.2025 6/6