Accused granted regular bail in GST fraud case involving fake input tax credit after 2+ years custody

Punjab and Haryana HC granted regular bail to petitioner in economic offense case involving fraudulent input tax credit and issuance of tax invoices without goods supply. Court relied on precedent establishing that denial of bail should be exception rather than rule in economic offenses triable by Magistrates once triple test satisfied. Petitioner was in custody since July 2022, with 22 of 33 prosecution witnesses examined. Court found no serious apprehension of absconding, evidence tampering, or witness influence. Given prolonged custody and slow trial progress, further incarceration deemed unnecessary. Bail petition allowed with petitioner ordered released on satisfaction of Chief Judicial Magistrate.

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Issues involved:
The judgment involves the issue of grant of regular bail to the petitioner in a case involving FIR under Sections 420, 467, 468, 471, 201, and 120-B IPC registered at Police Station Farakpur, District Yamuna Nagar, Haryana.

Details of the Judgment:
The case revolved around the petitioner being accused of forming bogus firms and causing a loss of revenue to the state exchequer. The investigation revealed that the petitioner misused documents to register firms in the name of others, leading to financial discrepancies worth Rs. 3,05,10,099. The petitioner, a tax consultant without formal qualifications, disclosed his involvement in creating fictitious companies, indicating his role as the main accused in the fraudulent activities.

The petitioner sought bail, claiming false implication and being a first-time offender, with a significant portion of prosecution witnesses already examined. The State, while acknowledging the petitioner's first-time offender status and time in custody, opposed bail due to the substantial financial loss caused by the petitioner's actions.

In the judgment, the court referenced a previous case emphasizing that bail denial should be an exception in economic offenses, especially when the investigation is complete and the trial is likely to be prolonged. Considering the trial's nature, the petitioner's custody duration, and the lack of serious concerns regarding absconding or tampering with evidence, the court granted bail to the petitioner.

The court ordered the release of the petitioner on bail, subject to conditions including regular appearance before the police station, submission of a financial deposit, and restrictions on involvement in any other criminal activities during the trial period.

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