The Supreme Court has set aside a Bombay High Court order that granted temporary immunity from arrest to Future Group director Sunil Biyani. The ruling relates to an ongoing GST intelligence investigation involving alleged fake invoicing and input tax credit fraud. While the protection was revoked, the court mandated that authorities must communicate any future arrest orders to the individual.
The Supreme Court of India on Wednesday set aside a Bombay High Court order that had provided interim protection from arrest to Future Group non-executive director Sunil Biyani. The decision was delivered by a bench comprising Justices Dipankar Datta and Sheel Nagu, which ruled that the High Court’s previous direction was legally impermissible.
Earlier, the Bombay High Court had heard an anticipatory bail plea from Biyani. The High Court had determined that the plea was premature because the Directorate General of Goods and Services Tax Intelligence (DGGI) had not yet issued a formal arrest order under Section 69 of the Central Goods and Services Tax (CGST) Act. However, despite calling the plea premature, the High Court had still granted Biyani protection from arrest for one week in the event that an order was issued. The Supreme Court found this contradiction legally flawed, noting that courts cannot grant such protection when a plea is deemed premature.
While the Supreme Court removed this shield, it established a key procedural requirement for the DGGI. The court directed that if an arrest order is issued under Section 69 of the CGST Act in the future, authorities must communicate it to the concerned individual—such as via email—before taking action. This instruction is designed to provide the individual with a reasonable opportunity to seek legal recourse and avoid immediate, surprise detention.
The underlying investigation by the DGGI focuses on allegations of fake invoicing and the circular movement of input tax credit, which are transactions that do not represent genuine business activity. According to the investigation details, the case involves significant amounts, with GST implications reportedly exceeding ₹200 crore, and is part of a broader probe into alleged financial irregularities, including foreign remittances. Sunil Biyani has maintained his defense, asserting in his previous filings that he resigned from the company in July 2023 and was implicated through fraudulent filings.
For investors and market observers, this development occurs against the backdrop of significant financial distress within the Future Group. Many entities within the group have previously faced insolvency proceedings, trading suspensions, and various regulatory inquiries. The ongoing GST investigation adds another layer of legal and operational complexity to the group's leadership. Investors may continue to monitor updates from the DGGI investigation, as legal proceedings involving management can impact corporate governance and the ongoing resolution processes for the group's remaining assets.