Regular bail in alleged GST fraud refused where ongoing investigation and risk of witness interference weighed against release.

Regular bail was declined in alleged fake input tax credit fraud because the matter involved a serious economic offence, the investigation was at a crucial stage, and release of the accused was seen as likely to prejudice the inquiry. The court noted the scale of the alleged GST fraud, the presence of absconding co-accused, and the risk of interference with witnesses and tampering with evidence. On that basis, it held that bail was not appropriate while the investigation remained ongoing.

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Issues: Whether regular bail should be granted to an alleged to have been involved in the utilisation of fake input tax credit in a serious economic offence.

Analysis: The application for regular bail was considered in the backdrop of allegations of a large-scale GST fraud involving fake firms and wrongful utilisation of input tax credit. The Court noted the seriousness of the , the magnitude of the alleged loss, and the fact that investigation was still at a crucial stage. It also took into account that several persons connected with the alleged were absconding and evading process, which raised concern about interference with the investigation if bail were granted.

Conclusion: Regular bail was declined because the case involved a serious economic offence, the investigation was ongoing, and there was a real apprehension of influencing witnesses and tampering with evidence.

Ratio Decidendi: In serious economic offences involving alleged fake input tax credit, bail may be refused where investigation is at a crucial stage and release of the accused may prejudice the inquiry by enabling interference with evidence or witnesses.

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