MP High Court Asks GST Fraud Accused To Share Google Map Location With Investigators As Bail Condition

The Madhya Pradesh High Court has granted anticipatory bail to an accused in a GST fraud case but with a strict condition. The court has ordered him to share his location with investigators by dropping a Google Map pin, warning that any breach would cancel the protection.

Justice Sandeep N. Bhatt passed the order on January 15, 2026, while allowing the anticipatory bail plea filed by Dheeraj Gupta. The Court said custodial interrogation was not warranted at this stage and observed that detaining the applicant would adversely affect his business.

“Hence, custodial interrogation is not warranted and also detaining of the applicant will adversely affect the business of the applicant. Accordingly, this Court is inclined to allow this application under Section 482 of the BNSS, 2023 (438 of the Cr.P.C.) and grant anticipatory bail to the applicant.,” the Court said.

Bail was granted on furnishing a personal bond of Rs 5 lakh with two sureties of the like amount.

The criminal case originates from a complaint lodged by Pratap Singh Lodhi, an agriculturist. Lodhi stated that he was told a small loan could be availed on agricultural land, but a larger loan would require forming a proprietorship firm and obtaining GST registration.

Acting on this assurance, a firm named Maa Narmada Traders was registered in his name using his documents. According to the complaint, no genuine business was ever carried out through the firm.

The matter surfaced when GST officials visited Lodhi and informed him that tax dues of more than Rs 72 lakh were outstanding against the firm. Investigators alleged that bogus transactions running into crores of rupees had been shown in the name of Maa Narmada Traders without his knowledge.

The firm was alleged to be one among several non-existent entities created to generate fake invoices and pass on ineligible input tax credit, causing a wrongful loss of about Rs 33.80 crore to the state exchequer.

The Court noted that Gupta had earlier been arrested in 2021 following an enforcement action by the Directorate General of GST Intelligence, Pune. That case involved offences under Sections 132(1)(b) and 132(1)(c) of the CGST Act, along with Sections 471 and 120-B of the IPC. He was later granted bail by an Additional Sessions Judge.

In 2024, GST authorities issued a show cause notice alleging Gupta's involvement in the creation of bogus entities to fraudulently avail and pass on input tax credit. A fresh FIR was later registered by the Economic Offences Wing in Bhopal. Apprehending arrest in that case, Gupta approached the High Court.

Before the Court, Gupta argued that the GST Act is a special statute and a complete code in itself. He said that where allegations are fully covered under the GST law, invoking general penal provisions under the IPC was not permissible. The State opposed the plea, saying the case involved serious economic offences and that custodial interrogation could reveal further fraud.

While granting relief, the Court noted that where the alleged amount exceeds ₹5 crore, the maximum punishment prescribed under the GST Act is five years. It also took note of the compounding provision under Section 138 of the Act. At a prima facie stage, the Court found that custodial interrogation was not justified and granted anticipatory bail.

The court imposed strict conditions while granting bail. Gupta was directed to cooperate with the investigation and appear before the investigating officer or apprehending authority as and when summoned. He was also directed to keep his mobile number operational at all times and to drop a Google Map location pin to ensure that his location remains available to the investigating officer or apprehending authority.

The Court made it clear that in case of bail jump or violation of any condition, the protection granted would become ineffective and the investigating officer or trial court would be at liberty to proceed against the applicant in accordance with law.