Excessive bail surety condition reduced after the High Court held an onerous requirement could operate as a virtual refusal of bail.

Bail conditions in a CGST prosecution were examined where the accused challenged a surety requirement of Rs. 2 crores each as excessive. The HC noted that, even in cases involving substantial alleged tax evasion, an extraordinarily onerous surety condition may amount to a virtual refusal of bail and frustrate the purpose of the bail order. On that basis, the court found the condition excessive and reduced the surety requirement to Rs. 50 lakhs each.

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Issues: Whether the surety amount of Rs. 2 crores each imposed as a condition for release on bail was excessive and liable to be modified.

Analysis: The application challenged the magnitude of the surety condition imposed after grant of bail in a prosecution under the Central Goods and Services Tax Act, 2017. The Court held that though the allegations involved a large tax evasion amount, an extraordinary surety amount or other onerous condition could operate as a virtual refusal of bail and would be contrary to the spirit of the bail order.

Conclusion: The surety condition was found to be excessive and was reduced to Rs. 50 lakhs each.

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