Massive Financial Scandal Unveiled in Mumbai as Sessions Court Denies Bail to Alleged Key Architect in Rs 23.99 Crore GST Fraud Case

Ranjit Mahanti

THE Sessions Court of Mumbai, on February 29, 2024, denied bail to Anil Babulal Chokhara, a 41-year-old businessman from Navi Mumbai. He was arrested by the Economic Offence Wing (EOW) of Mumbai on January 17, 2024 and is currently in Judicial Custody at Arthur Road Jail.

The EOW has filed an FIR (CR No. 70/2023) against Anil Chokhara under sections 420, 465, 467, 468, 469, 471, 473 read with Section 120-B of the Indian Penal Code, 1860. The EOW alleges they have unearthed a massive GST scam, where the complainant, Navin Jain, stated that his personal documents and KYC were obtained by fraud for a shell company named Magic Royal Bullion Pvt. Ltd, in which he was listed as a director. Jain only became aware of the scam upon receiving a notice from the GST department, indicating he was liable for outstanding payments as a director of M/s Magic Royal Bullion Pvt. Ltd.

Advocates for Anil Chokhara argued that he was not named in the FIR and was falsely implicated in the case. They claimed that the person guilty of the crime was the original complainant, who was trying to blame Chokhara to evade GST payments.

However, the Learned Special Public Prosecutor (Ld. SPP) representing the EOW submitted that material unearthed during investigations clearly showed Chokhara’s connection with the offence. He was identified as one of the individuals operating the bank account of the company, and he was found in possession of a SIM card not registered in his name, which he allegedly used to communicate with other conspirators. The Ld. SPP also alleged that Chokhara and others preyed on individuals who were uneducated and from economically backward classes. It was highlighted that the company, Magic Royal Bullion Pvt. Ltd, had conducted transactions with four other companies as well.

The Ld. SPP further noted that the investigation was still at a preliminary stage, with other accused individuals absconding, and there were high chances that Chokhara, if granted bail, would tamper with valuable evidence and hinder the investigation. It was also mentioned that Chokhara has multiple ongoing cases against him in EOW, CBI, and PMLA matters, related to an alleged fraud worth Rs 304 crores, for which he is currently out on bail, indicating his pattern as a habitual economic offender.

After hearing both sides, the Learned Judge observed that, prima facie, the case appeared to be a well-planned and orchestrated conspiracy to open companies using the KYC details of poor and uneducated people to siphon off and launder money, thereby evading GST payments. The judge emphasized that it was a pre-planned and well-designed conspiracy and that the identities of other accused individuals and the actual recipients of the money needed to be unearthed. Consequently, Anil Chokhara’s bail was rejected.