Vivek Garg (Corpus) vs Union Of India And 4 Others on 6 April, 2026

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Allahabad High Court

Vivek Garg (Corpus) vs Union Of India And 4 Others on 6 April, 2026

1.Heard Shri Imtiaz Husain, learned counsel for the petitioner;Shri Dhanjay Awashti and Shri Lakshay Kumar, learned counsel for the respondent nos. 2 and 4; Shri S.K. Pal, learned Solicitor General appearing for respondent no.1 and learned A.G.A. appearing for respondent nos. 3 and 5.

2.The above noted Habeas Corpus Writ Petition has been filed praying for following prayer:-

1. Issue a writ order or direction in the nature of Habeas Corpus directing the respondents herein to produce and release the corpus/petitioner from their illegal detention, while declaring the arrest, detention and remand of the petitioner as illegal,null and void for not following directions of Hon'ble Apex Court as well as this Hon'ble Court.

ii. Issue a writ, order or direction in the nature of certiorari setting aside the order dated 19.12.2025 passed by Special Chief Judicial Magistrate, Meerut, in case no. 512 of 2025 under sections 132(1)(b), 132(1)(c) and 132(1)(i) of C.G.S.T. Act, 2017 , Police Station, CGST, District Ghaziabad and all consequential proceedings thereof.

iii Issue a writ, order or direction in the nature of mandamus toinitiate departmental enquiry upon the actions of errant GST officials of respondent no.1.

iv. Issue any other writ,order or direction, which this Hon'ble court deems fit and proper in the facts and circumstances of the present case.

v. To award the cost of petition.

3.On 12.3.2026 following order was passed by this court :-

" Shri Imran Ullah, learned Senior Counsel assisted by Shri Imtiaz Husain, learned counsel for the petitioner has submitted that arrest memo dated 18.12.2025 does not shows any time of arrest nor it is signed by arresting officer. He has further submitted that no ground of arrest served on the petitioner before arrest.

Learned counsel for the petitioner has brought on record the certified copy of the arrest memo dated 18.12.2025 annexed as R.A.-1 to the rejoinder affidavit.

Shri Dhanjay Awasthi, learned counsel for the respondent nos. 2 and 4, has stated that Annexure RA-1 is a forged document although it is a certified copy issued by the court.

The Remand Magistrate/ Special Chief Judicial Magistrate, Meerut is directed to send original record of case no. 512 of 2025 under section 132 (1) (b), 132(1)(c) and 132(1) (i) of CGST Act, 2017 in sealed cover by 17.3.2026 to this court.

The aforesaid Remand Magistrate/Special Chief Judicial Magistrate, Meerut is directed to seal the record immediately after receiving copy of this order and ensure that no tampering is done in the record.

Put up this case on 17.3.2026 as a fresh case.

The Registrar (Compliance) of this Court is directed to communicate this order to Remand Magistrate/Special Chief Judicial Magistrate, Meerut and District Judge, Meerut within 24 hours for compliance. "

4.After receipt of the record from the court of Remand Magistrate in seal cover and its perusal by this court,the following order was passed on 17.3.2026:-

" 1. Heard Sri Imran Ullah, learned Senior Counsel, assisted by Imtiaz Husain, learned counsel for petitioner and Sri Dhananjay Awasthi, learned counsel for respondent nos. 2 and 4.

2. On 12.03.2026 the following order was passed by this Court:-

"Shri Imran Ullah, learned Senior Counsel assisted by Shri Imtiaz Husain, learned counsel for the petitioner has submitted that arrest memo dated 18.12.2025 does not shows any time of arrest nor it is signed by arresting officer.. He has further submitted that no ground of arrest served on the petitioner before arrest. Learned counsel for the petitioner has brought on record the certified copy of the arrest memo dated 18.12.2025 annexed as R.A.-1 to the rejoinder affidavit. Shri Dhanjay Awasthi, learned counsel for the respondent nos. 2 and 4, has stated that Annexure RA-1 is a forged document although it is a certified copy issued by the court. The Remand Magistrate/ Special Chief Judicial Magistrate, Meerut is directed to send original record of case no. 512 of 2025 under section 132 (1) (b), 132(1)(c) and 132(1) (i) of CGST Act, 2017 in sealed cover by 17.3.2026 to this court. The aforesaid Remand Magistrate/Special Chief Judicial Magistrate, Meerut is directed to seal the record immediately after receiving copy of this order and ensure that no tampering is done in the record. Put up this case on 17.3.2026 as a fresh case.

The Registrar (Compliance) of this Court is directed to communicate this order to Remand Magistrate/Special Chief Judicial Magistrate, Meerut and District Judge, Meerut within 24 hours for compliance."

3. In compliance of the aforesaid order, the Remand Magistrate/Special Chief Judicial Magistrate, Meerut, has sent the record of the remand proceedings. The arrest memo present in the record of Remand Magistrate is identical to the one already placed on record as Annexure R.A.-1. Therefore, clearly the argument made on behalf of the respondent nos. 2 and 4 was incorrect. For ready reference the arrest memo on record of the Magistrate Court is scanned and copied as below:-?

DIN: 20251254YE000082398A ARREST MEMO (Under Section 69 of the Central Goods and Services Tax Act, 2017) Whereas, the Commissioner, Central Goods and Services Tax, Ghaziabad, CGST Bhawan, Rani Jhansi Marg, Near Hapur Chungi Chauraha, Kamla Nehru Nagar, Ghaziabad, Uttar Pradesh-201002, has reasons to believe that you:

Name: Shri Vivek Garg Andhaar No.888450250780 Age: Approx 27 Years (DOB: 10.02.1998) Father's Name: Shri Rajender Garg Permanent Address: C/o Shri Rajender Garg, Bishrakh, PO-IA Surajpur, Distt- Gautam Buddha Nagar, UP-201306.

Present Address: T-5, C-1/107, 3rd FLOOR, DLF Bhopra, Defence Colony, Bhopra, Sahibabad, Ghaziabad-UP-201005. have committed offences specified under clause (b) and clause (e) of sub-section (1) of Section 132 of the CGST Act, 2017, which are punishable under clause (i) of sub-section (1) of the said section. I, Shri/Smt. Harshit Verma, Inspector (Anti-Evasion), CGST Ghaziabad, being duly authorized under Section 69 of the CGST Act, 2017, hereby arrest you today at..............Hrs on 18.12.2025 at CGST, Bhawan, Rani Jhansi Marg, Near Hapur Chungi Chauraha, Kamla Nehru Nagar, Ghaziabad under the authority vested in me.

Accordingly, Shri Vivek Garg, son of Shri Rajender Garg, has been placed under arrest and;

? The grounds of arrest have been explained to him in writing.

? He has been informed of his right to have a relative or friend informed of his arrest.

? Sh./Ms. Moni Rani W/o Shri Vivek Garg has been duly informed about the arrest.

Name of Arresting Officer: Harshit Verma Signature:

Designation: Inspector (Anti-Evasion), CGST Ghaziabad I hereby acknowledge that the grounds of my arrest have been explained to me and my arrest was informed to my relative/father/son/wife. MS.MONI RANI. Name of Witness: Shri Pradeep Kumar Father's/Mother's Name: Shri Govardhan Singh.

Address: Kasba -Niwari, Modi Nagar, Ghaziabad ?????? ????? 18/12/2025 Name of Witness: Shri Monu Father's/Mother's Name: Shri Suresh, Address: Village-Saunda, Modi Nagar, Ghaziabad ????

18/12/2025 Seen ?????? ??? ???????? ??????????

19/12/25 Signature of Arrestee:

Date: 18-12-2025 ???? ???? ????????? ?? ???? ??? ???? ???? ??? ??? ?? ???? ??? Wife ?? Phone ?? ????? ??? ??? Vivek Garg 18/12/2025 Copy Received: Vivek Garg 18.12.2025?

4. Today, a supplementary counter-affidavit has been filed by Sri Dhanjay Awasthi, learned counsel for respondent nos. 2 and 4, wherein it has been stated that the aforesaid discrepancy in the arrest memo may have occurred on account of bona fide human error and due to the same, the time of arrest and the signature of the arresting officer were not mentioned in the arrest memo on record of the Remand Magistrate.

5. Learned counsel for the petitioner has further pointed out that as per Section 69 of the CGST Act, the ?reasons to believe? should be recorded before issuing authorization for effecting the arrest of the petitioner. It is clear from record that the ?reasons to believe? were recorded (at 02:05 p.m.) after authorizing the arrest of the petitioner (at 02:03:10 p.m.) and his arrest was made first of all(at 02:03 p.m.). Therefore, the entire exercise of arrest conducted by the respondent nos. 2 to 4 was illegal. For ready reference the scanned copy of ?reasons to believe?, present on record of the Magistrate, is produced hereinbelow:-

?GEXcom/AE/INV/512/2025-AE-O/o-COMMR-CGST-G2B Note #5 On examination and careful consideration of the records, material evidence and statements placed before me, I have reason to believe that Shri Vivek Garg, proprietor of M/s Garg Traders (GSTIN:09EMWPG8392D1ZB), having registered place of business at Vrindavan Garden, S-26, Sahibabad, Ghaziabad, Uttar Pradesh-201005, is actively involved in activities intended to defraud the Government exchequer.

The Investigation has revealed that Shri Vivek Garg has purchased, operated and controlled multiple fake/non-operational GST firms and has issued invoices without actual supply of goods, thereby fraudulently passing on and availing Input Tax Credit (ITC) on commission basis. The said fraudulent activities have been corroborated through analysis of BO portal data, common IP address usage, linkage of mobile number, email ID and PAN, recovery of GST login credentials, electronic devices, documents and his voluntary statement dated 18.12.2025, wherein he has admitted his role in operating 12 fake GST firms.

The quantum of fraudulent ITC involved in the present case is substantial, amounting to approximately 53.14 crore passed on and 21.95 crore excess ITC fraudulently availed, attracting offences punishable under Section 132(1)(b) and Section 132(1)(c) of the CGST Act, 2017, which are cognizable and non-bailable in terms of Section 132(5) of the said Act.

If Shri Vivek Garg is allowed to remain at liberty, he is likely to tamper with electronic and documentary evidence, influence witnesses and intermediaries involved in the fake invoicing chain, and adversely affect the ongoing investigation, which is at a crucial stage for identification of the complete network, beneficiaries and money trail. His arrest is, therefore, essential to ensure proper and unhindered investigation of the offence.

Accordingly, I have reason to believe that the arrest of Shri Vivek Garg is necessary for proper and effective investigation of the offence.

Therefore, in exercise of the powers conferred upon me under Section 69 of the CGST Act, 2017, I hereby authorise, Shri Harshit Verma, Inspector, Anti-Evasion, CGST Ghaziabad Commissionerate, to arrest Shri Vivek Garg for the offences committed by him as specified under Section 132(1)(b) and Section 132(1)(c) of the CGST Act, 2017. 18/12/2025 02:05 PM ???? ??????? | SANJAY LAWANIA ?????? | COMMISSIONER Seen ?????? ??? ???????? ??????????

???? (U.P.) 19/12/25.?

6.. Sri Dhanjay Awasthi, learened counsel for respondent nos. 2 and 4, prays for and is granted three days time to explain the averments made in the supplementary counter-affidavit filed on behalf of respondent nos. 2 and 4. He shall also submit reply to the arguments made by learned Senior Counsel for the petitioner regarding the infirmity found in the ?reasons to believe?.

7. After hearing the learned counsel for the parties and perusal of the record of the learned Magistrate produced before us, we are prima facie of the view that the arrest of the petitioner is illegal and, therefore, the petitioner is directed to be released from custody forthwith without waiting for supply of certified copy of this order.

8. The public prosecutor of C.G.S.T. is directed to inform the authority concerned in writing about the order passed today for securing release of petitioner from jail.

9. Put up as fresh case again on 30.03.2026.

10. The record of the Remand Magistrate, Meerut, sent to this Court in compliance of the order dated 12.03.2026 is directed to be returned forthwith to the Remand Magistrate, Meerut, in sealed cover by the office.

11. The certified copy of this order shall be issued by the office today to either of the parties on payment of usual charges."

45Learned counsel for the respondent nos. 2 and 4 has filed supplementary counter affidavit admitting in paragraph-3 that deficiency in the arrest memo regarding non mention of time of arrest and signature of the arresting officer remaining blank on courts' copy was human clerical error, when the office copy of the respondents are complete in all respects.

6.In view of the above consideration it is clear that respondents have not provided grounds of arrest to the petitioner as per law laid-down by the Apex Court in the case of Radhika Agrawal Vs. Union of India (2025) 5 SCC, 545 followed by this court in case of Jai Kumar Aggarwal Vs. Director General of GST Intelligence and 3 others passed in Habeas Corpus Writ Petition No. 139 of 2026.

7.In view of the above consideration, we have no option but to quash the remand order dated 19.12.2025 passed by the Special Chief Judicial Magistrate , Meerut impugned in this petition.We further warn the respondent nos. 2 and 4 and the Remand Magistrate not to exercise their power in violation of law laid-down by the Apex Court and this court in the case of Prabir Purkayastha ersus State (Nct Of Delhi) LAWS(SC)-2024-5-46, Pankaj Bansal . Union of India LAWS(SC)-2023-10-3, Vihaan Kumar State of Haryana LAWS(SC)-2025-2-20 & Ashish Kakkar v U.T Chandigarh; Criminal Appeal No.1518 of 2025@ SLP [Cr] No.1662 of 2025 & Kasireddy Upender Reddy v State of Andhra Pradesh LAWS(SC)-2025-5-148 and as well as order passed by this Hon'ble Court in the case of Manjeet Singh @ Manjeet Singh Chana v State of Uttar Pradesh & Others LAWS(ALL)-2025-4-9, Anwar Dhebar v State of U.P & 2 Ors CRLP No. 12507 of 2024 and Umang Rastogi and Another State of Up and 3 Others

8.Petitioner has already been released from the custody.

9.The writ petition is allowed.

10.However, it is open for the respondents to proceed against the petitioner in accordance with law discussed herein above.

(Divesh Chandra Samant,J.) (Siddharth,J.) April 6, 2026 Atul K. Sri.

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Allahabad High Court