Liberty Prevails: Bail Granted in GST Fraud Case After Prolonged Pre-Trial Custody
The Gujarat High Court ruled that bail should be granted to an accused involved in a GST Input Tax Credit (ITC) fraud case, even though it is an economic offense, citing the extended period of pre-trial custody and the completion of the investigation.
Key Grounds for Granting Bail
- Completion of Investigation: The court observed that the petitioner had been in custody for nearly eight months, and crucially, the investigation was over and the chargesheet had been filed. This eliminated the primary need for further custodial interrogation.
- No Risk of Flight or Tampering: The court found no compelling evidence to suggest that the petitioner was a flight risk or would tamper with prosecution witnesses if released on bail, which are standard factors governing bail applications.
- Balancing Personal Liberty and Presumption of Innocence: The court’s approach aligns with Supreme Court principles which emphasize that prolonged incarceration pending trial should be avoided, particularly when the trial process is expected to take considerable time.
- Imposition of Stringent Conditions: To mitigate the State’s concerns regarding the gravity of the economic offense (fraud involving over ₹10 crores), the court imposed stringent conditions, directing the petitioner to be released on a personal bond of ₹10,000 with surety. Conditions included:
- Regular appearances before the police station.
- Surrender of the passport.
- Prohibition on leaving India without permission.
- No inducement or threat to witnesses.