Anticipatory bail in GST fraud allegations granted where documentary inquiry and no need for custodial interrogation were shown.

Anticipatory bail in GST-related fraud allegations depends on settled pre-arrest principles: arrest should not be routine, the gravity of the accusation and the accused's role must be weighed, and personal liberty must be balanced against a fair investigation. The Court noted that the inquiry was largely documentary, the petitioners had permanent residence, there was no material suggesting absconding, and custodial interrogation was not shown to be necessary. Finding no convincing basis to fear prejudice to the investigation, tampering with evidence, or intimidation of witnesses, the Court granted anticipatory bail subject to surrender, bonds and sureties, cooperation with investigation, and non-interference with witnesses.

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Issues: Whether the petitioners were entitled to anticipatory bail in connection with the alleged GST-related fraud and allied IPC offences.

Analysis: The allegations arose from an investigation into issuance and use of invoices without actual supply of goods or services, claimed input tax credit, and alleged diversion of funds through shell entities. The Court applied the settled anticipatory bail principles that arrest is not to be made routinely, that the nature and gravity of the accusation and the exact role of the accused must be assessed, and that liberty must be balanced against the need for a fair investigation. It noted that a substantial part of the inquiry was documentary in nature, that the petitioners had permanent residence, that there was no material showing likelihood of absconding, and that custodial interrogation was not shown to be necessary. The Court also found no convincing basis to conclude that grant of pre-arrest bail would prejudice the investigation or that the petitioners would tamper with evidence or intimidate witnesses.

Conclusion: Anticipatory bail was granted to the petitioners, subject to conditions requiring surrender, furnishing bonds and sureties, cooperation with investigation, and non-interference with witnesses.

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