Custodial interrogation justified in alleged organised GST evasion and bribery conspiracy; anticipatory bail refused

Anticipatory bail was refused in an alleged organised GST evasion and bribery conspiracy because custodial interrogation was considered necessary for a fair and full investigation. The Court treated the allegations as disclosing a structured racket involving transporters, intermediaries and officials, with suspected bogus documents, manipulation of transport records and payments to secure non-verification of goods in transit. It held that seizure of some records and devices did not eliminate the need to trace the full conspiracy, identify connected persons and recover material evidence still in the petitioner's possession.

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Issues: Whether anticipatory bail should be granted in a case involving alleged organised GST tax evasion, bribery of departmental officials, and the need for custodial interrogation.

Analysis: The allegations disclosed a structured racket involving transporters, intermediaries and officials, with suspected use of bogus documents, manipulation of transport records and monthly payments to secure non-verification of goods in transit. The offence was treated as having wide financial ramifications affecting the tax chain and public exchequer. The Court held that mere seizure of some records and devices did not eliminate the need for custodial interrogation, since the full extent of the conspiracy, the role of connected persons and the documents in the petitioner's possession still required investigation.

Conclusion: Anticipatory bail was declined because custodial interrogation was found necessary for fair and full investigation.

Ratio Decidendi: In serious economic offences involving organised evasion of tax and possible official collusion, anticipatory bail may be refused where custodial interrogation is necessary to unearth the full conspiracy and recover material evidence.

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