2600 Firms Formed Using Forged GST Numbers to Defraud State: Allahabad HC Rejects Bail Plea of...

The Allahabad High Court has rejected the bail plea of an accused involved in a scam where "2,600 firms were formed using forged GST numbers to defraud the state." The court acknowledged the massive scale and sophisticated nature of the fraud, which involved creating a network of shell companies with fake GST registrations to generate bogus invoices and claim fraudulent Input Tax Credit (ITC). Given the gravity of the economic offense and the potential for huge revenue loss to the state, the court found insufficient grounds to grant bail, emphasizing the need to curb organized tax evasion rackets.