Delhi Court Dismisses Bail of Businessman Running a Dummy Company

A Delhi court has dismissed the anticipatory bail plea of a businessman accused of committing tax fraud by running a company through dummy persons, holding that the “corporate veil offers no refuge to tax evaders and scammers”.

The businessman, Himanshu Mongia, deals in trading electronic items but had been avoiding the summons related to the case. Despite claiming innocence and citing prior engagements, he failed to appear before the Directorate of Revenue Intelligence during their investigation into the alleged tax evasion by a company called Green Globe Enterprises involved in import-export business.

The judge highlighted that it’s a common tactic for those involved in economic offenses to use others as a front to hide their identities. She stressed that investigative agencies and courts must dig deeper to uncover the true culprits orchestrating such white-collar crimes from the shadows. The corporate veil cannot shield tax evaders and scammers.

Since Mongia repeatedly ignored the summons for inquiry, the court found his application for anticipatory bail premature and dismissed it. The court ordered him to cooperate and participate in the inquiry. The Directorate of Revenue Intelligence had opposed Mongia’s bail plea, claiming he was evading the investigation, which the court acknowledged during its ruling.