2022 (4) TMI 866

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ffences Wing for offences under Sections 420, 468 and 471 of the Indian Penal Code, 1860 ["IPC"]. 2. The FIR was registered on 24.12.2018, originally in respect of offences under Sections 420, 468 and 471 of the IPC, and the only accused named in the FIR was one Sanjay Garg, son of Deep Chand Garg. The FIR alleges cheating and fraud by M/s Saraswati Enterprises ["Saraswati"], of which Sanjay Garg is the proprietor, causing loss to the government for the sum of Rs.9.97 crores. Briefly stated, the allegations in the FIR concern unauthorised and fraudulent claim of input tax credit in respect of Goods and Services Tax ["GST"] by Saraswati. 3. The chargesheet has since been filed on 08.10.2021, wherein the applicant has been named as an a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... 7210901568 was given as an alternative number. The Mobile No. 7210901568 was previously subscribed with operator Cellone, which had closed its offices and its record were not available but before that it was ported in Airtel Cellular and was found subscribed in the name of Shubham Khandelwal since 16-03-2018. Also, Mobile No. 9560238036 used at the time of opening of bank account of M/s Saraswati Enterprises in Bandhan Bank, Noida on 18.11.17 was found subscribed in the name of Shubham Khandelwal since 29.11.2016." [Emphasis supplied]. 5. The email addresses used at the time of registration in the VAT department and the banks have also been verified in respect of which the Status Report states as follows:- "(6) During the c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ransactions with the purchasers dealing with Saraswati revealed that Shubham Khandelwal was the person who supplied the bills and accepted payments in account of Saraswati. 7. Mr. Chadha draws my attention to the contents of the Status Report to submit that the applicant is involved in a complex and well-planned scheme of setting up of fictitious companies, by using fake identities, in order to generate bogus invoices and claiming unauthorised input tax credit to the detriment of the government. He submits that having regard to the facts of this case, the applicant is not entitled to be released on bail. 8. Having heard learned counsel for the parties, I am of the view that the chargesheet and a supplementary chargesheet having been f....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... SCC 40 in the following terms: "23. Apart from the question of prevention being the object of refusal of bail, one must not lose sight of the fact that any imprisonment before conviction ahs a substantial punitive content and it would be improper for any court to refuse bail as a mark of disapproval of former conduct whether the accused has been convicted for it or not or to refuse bail to an unconvicted person for the purpose of giving him a taste of imprisonment as a lesson. 24. In the instant case, we have already noticed that the "pointing finger of accusation" against the appellants is "the seriousness of the charge". The offences alleged are economic offences which have resulted in loss to the State exchequer. Thoug....