📢Andhra Pradesh HC Grants Pre-Arrest Bail in ITC Fraud Allegation
Kurra Jogeswera Rao vs State of Andhra Pradesh
--CRIMINAL PETITION NO: 1448/2024

Facts of the Case

▪️ Petitioners: Prathipati Pulla Rao (TDP leader and former minister), his wife, son, and daughter.
▪️ Charges: Alleged availing of irregular Input Tax Credit (ITC) by issuing forged invoices without receiving goods/services, in their capacities as Directors of Avexa Corporation.
▪️ Revenue’s Allegation: From July 2017 to March 2022, Avexa Corporation issued fake invoices and filed GST returns to divert tax amounts, defrauding the exchequer. Kurra Jogeswera Rao, Prathipati’s son, admitted to wrongdoings in the company's operations during the said period.
▪️ Petitioners’ Argument: The complaint was politically motivated to hinder their participation in the General Elections, lacking elements to establish cases under sections 30, 409, 420 of the IPC.

Court Judgment

▪️ Decision: Andhra Pradesh HC granted anticipatory bail to the petitioners, subject to certain conditions.
▪️ Reasoning:
▪️ Tampering and Intimidation: The mere apprehension of evidence tampering or witness intimidation is not sufficient to deny bail without proof.
▪️ Arnesh Kumar Judgment: Emphasized that arrests should not be made routinely based on mere allegations without reasonable investigation.
▪️ Investigation Status: Noted that a significant portion of the investigation is complete with the petitioners' cooperation.