Mumbai: The Bombay High Court has overturned a Special CBI Court order granting bail to three accused in a ₹40 lakh alleged bribery case involving Central Goods and Services Tax (CGST) officials.

The High Court, on September 16, allowed the Central Bureau of Investigation's (CBI) revision petition, quashed the earlier order and directed that the accused be remanded to two days of CBI custody for custodial interrogation.

Who are the three accused?

The accused are Rakesh Kumar Sinha, CGST Superintendent at Khandeshwar in Raigad; Vinay Kumar Kantheti, an IRS officer and CGST Additional Commissioner; and Narinder Rajput, a private individual and Customs House Agent.

According to the CBI, Sinha allegedly demanded an illegal gratification in connection with proceedings involving a complainant's firm. The agency said the initial alleged demand was ₹1.5 crore, which was subsequently reduced to ₹40 lakh.

CBI trap allegedly catches agent accepting ₹40 lakh

The CBI's Anti-Corruption Branch in Mumbai registered the case on August 26 under Section 7 of the Prevention of Corruption Act, 1988, based on a complaint.

According to the agency, a trap was laid on August 27. Rajput was allegedly apprehended while accepting ₹40 lakh on behalf of Sinha and Kantheti.

All three were subsequently arrested and produced before the Special CBI Court in Thane. The CBI had sought five days of police custody to question the accused.

Why did the Special Court grant bail?

The Special Court, in its August 28 order, rejected the CBI's request for police custody. It also held that the arrests were illegal and released the three accused on bail.

The CBI challenged that decision before the Bombay High Court, arguing against the Special Court's findings on the legality of the arrests.

What did the Bombay High Court rule?

After examining the records, the High Court found that the grounds of arrest had been communicated to the accused and that relevant family members and advocates had been informed.

The court consequently allowed the CBI's revision petition, set aside the Special Court's order and ordered two days of CBI custody.

Following the order, Sinha and Rajput were taken into CBI custody for interrogation.

The CBI is also making efforts to trace and apprehend Kantheti, the CGST Additional Commissioner, in accordance with law.

Investigation continues

The case centres on allegations of demanding and accepting illegal gratification in connection with CGST proceedings. The CBI investigation remains ongoing.

The High Court's latest order concerns the legality of the arrests and the custody required for investigation; it does not by itself establish the bribery allegations against the accused.

Further proceedings will determine the course of the case as investigators examine the alleged demand, the payment and the roles attributed to each accused.