The court of Additional Sessions Judge Dr Rajneesh has dismissed the bail applications of Ludhiana-based industrialist Kewal Krishan Garg, president of the All India Furnace Association, and his son, Chetan Garg, in an alleged bogus billing scam.The Directorate General of GST Intelligence (DGGI) has accused them of being involved in a network of alleged fake GST registrations and fraudulent input tax credit (ITC) transactions involving approximately Rs 436 crore.In its order, the court held that the allegations against the applicants were grave and that economic offences of this nature affected the health of the economy and posed a serious threat to society. It observed that granting bail at this stage could create a likelihood of interference with the investigation.The case concerns the alleged fraudulent availment and utilisation of input tax credit by four companies associated with the KNL Group, which is allegedly owned by the accused: KNL Drivelines Parts Private Limited, Ramya Balaji Alloy Private Limited, KNL Axles Private Limited and KNL MK Gears Private Limited.According to the prosecution, the companies allegedly availed of or utilised ITC worth approximately Rs 21.81 crore on the strength of invoices issued by suppliers without any actual supply or movement of goods.The department alleged that Garg and his son, Chetan Garg, were actively involved in the operations of these companies and the alleged use of fake invoices. According to the prosecution, the investigation initially identified 44 suspected fake GST registrations involving transactions worth approximately Rs 261 crore. It subsequently expanded to cover 76 registrations, with the alleged fraudulent ITC network growing to around Rs 436 crore.Opposing the bail applications, the department contended that the case was supported by witness statements, WhatsApp chats allegedly showing untaxed cash sales and other material collected during the investigation. It also expressed concerns that witnesses could be influenced and evidence tampered with if the applicants were released on bail.The defence, however, maintained that Garg had been falsely implicated and challenged the legality of his arrest. His counsel argued that the companies were genuine manufacturing concerns operating in Ludhiana and that there was no independent forensic, financial, banking or digital evidence establishing his connection with the alleged supplier network.The defence further contended that applicant Kewal Krishan Garg had no previous criminal antecedents, was a senior citizen suffering from various ailments and had been in custody since August 19, 2026. It argued that the investigation and trial could take considerable time and that no complaint under Section 132 of the Central Goods and Services Tax Act had been filed against him till then.After considering the rival submissions, the court held that the defence arguments concerning the allegations and the legality of the proceedings would require consideration at the appropriate stage and were insufficient to justify the grant of bail under the present circumstances.