Statutory bail in GST prosecution: onerous monetary conditions were relaxed where no charge-sheet or extension was filed.

In a GST prosecution, the Calcutta HC relaxed onerous bail conditions after noting that no charge-sheet had been filed and no extension of the investigation period had been sought. The Court accepted that, on those facts, the petitioners had acquired a statutory right to be enlarged on bail and that continued custody could not be justified by stringent monetary conditions. Relying on Article 21, the Court reiterated that bail conditions must secure attendance at trial and must not function as punitive recovery terms. The petitioners were directed to be released on bail subject to furnishing personal bonds.

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Issues: Whether the conditions imposed for grant of bail to the petitioners, arrested in a GST prosecution, were liable to be relaxed when no charge-sheet had been filed and no extension of the investigation period had been sought.

Analysis: The petitioners claimed entitlement to release on the statutory footing that continued custody beyond the prescribed investigation period was impermissible in the absence of a charge-sheet or an extension of time. The Court accepted that the investigating authority had neither filed the charge-sheet nor sought extension of time and held that the stringent monetary conditions earlier imposed could not stand in the way of release when the petitioners had acquired the statutory right to be enlarged on bail. The Court also relied on the principles of personal liberty under Article 21 and the settled law that bail conditions must secure presence at trial and should not operate as punitive recovery conditions.

Conclusion: The bail conditions were relaxed and the petitioners were directed to be released on furnishing personal bond of Rs. 50,00,000 each, in favour of the petitioners.

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