Sessions Court Grants CA Anticipatory Bail in ₹560 Cr GST Fraud, Noting “Bail is Rule.”
Issue
Whether a Chartered Accountant (CA) should be granted anticipatory bail in a large-scale GST evasion case, where his role was advisory and he is not the primary person responsible for the firms’ operations, and is not a flight risk.
Facts
The applicant, a Chartered Accountant, was accused of being involved in a massive ₹560 crore GST evasion racket involving multiple firms.
The applicant sought anticipatory bail to prevent arrest.
The applicant’s primary argument was that merely being the CA for the accused firms does not automatically create criminal culpability under Section 132 of the CGST Act.
He contended that the legal liability for the evasion rests with the firms and their “responsible persons,” not their professional consultant.
The applicant also assured the court that he was not a flight risk and was willing to cooperate fully with the investigation and comply with all conditions.
Decision
The Sessions Court, Jamnagar, granted anticipatory bail to the Chartered Accountant.
The court reiterated the settled legal principle (from Supreme Court precedents like Sanjay Chandra) that “bail is the rule and refusal is the exception.”
It held that if an accused is otherwise eligible for regular bail upon arrest, there is no justification to deny anticipatory bail, provided cooperation is assured.
The court emphasized that denying bail in this situation, where the applicant is not a flight risk and promises cooperation, would amount to pre-trial punishment.
The bail was granted subject to standard conditions to ensure his presence and non-interference with the investigation.
Key Takeaways
No Automatic Culpability for CAs: A professional’s advisory role (like a CA) does not automatically make them a party to the criminal conspiracy or liable for the fraudulent acts of the companies they represent. The burden is on the prosecution to prove their active involvement.
“Bail is the Rule” Principle: Even in large-scale economic offense cases, the fundamental principle of “bail is the rule” is a primary consideration for the courts.
Anticipatory Bail vs. Pre-Trial Punishment: When an accused is not a flight risk and is cooperating, denying anticipatory bail (which leads to arrest) is viewed by the courts as a form of pre-trial punishment, which is to be avoided.
Cooperation is Key: The grant of anticipatory bail is strongly linked to the accused’s assurance that they will cooperate fully with the investigation and will not flee justice.