Written grounds of arrest and prima facie GST invoice fraud evidence led to rejection of bail in an economic offence case.

Written grounds of arrest must be furnished to the arrested person, distinct from the general reasons for arrest, and the record prima facie showed that the arrest papers included those grounds, so the objection of non-furnishing was rejected. In a bail request arising from alleged fraudulent availment and passing of input tax credit through fake invoices, the Court noted prima facie material from statements, electronic records, seized devices, forensic analysis and WhatsApp chats linking the petitioners to fake firms and invoices without actual supply of goods, along with the alleged scale of the offence and lack of cooperation during investigation, so bail was declined.

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Issues: (i) Whether the petitioners were supplied written grounds of arrest in compliance with the governing criminal procedure and GST arrest provisions; (ii) whether the petitioners made out a case for bail in a prosecution alleging fraudulent availment and passing of input tax credit through fake invoices.

Issue (i): Whether the petitioners were supplied written grounds of arrest in compliance with the governing criminal procedure and GST arrest provisions.

Analysis: The order applies the settled principle that written grounds of arrest must be furnished to the arrested person, and distinguishes those grounds from the general reasons for arrest. On the record, the petitioners had been summoned and examined during investigation, written grounds of arrest accompanied the arrest papers, and the materials placed before the Court did not prima facie show that the documents were not furnished at the time of arrest.

Conclusion: The objection based on non-furnishing of written grounds of arrest was rejected.

Issue (ii): Whether the petitioners made out a case for bail in a prosecution alleging fraudulent availment and passing of input tax credit through fake invoices.

Analysis: The allegations involved a large-scale economic offence supported by statements under investigation, electronic material, seized devices, forensic analysis and WhatsApp chats. The Court found prima facie material connecting the petitioners with operation of fake firms and issuance of invoices without actual supply of goods, and also noted the magnitude of the alleged offence and the alleged non-cooperation during investigation.

Conclusion: Bail was declined.

Final Conclusion: The petitions were not found fit for enlargement on bail and the prosecution was permitted to continue on the basis of the prima facie material collected during investigation.

Ratio Decidendi: In a bail proceeding arising from a documentary and electronic evidence-based economic offence, written grounds of arrest must be furnished, but where such compliance is prima facie shown and substantial material links the accused to the alleged fraudulent activity, bail may be refused.

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