Desk of CA. Praveen Sharma – 1066 Series (CAPS) 

 Chhattisgarh High Court IN THE CASE OF Sanjeev Agrawal v. Directorate General of GST Intelligence (DGGI)

Issue: Whether regular bail should be granted in a case involving an alleged ?17.18 crore fake Input Tax Credit (ITC) fraud under the CGST Act.

Chhattisgarh High Court Grants Regular Bail in ?17.18 Crore Fake ITC Case

The Chhattisgarh High Court considered a regular bail application in Sanjeev Agrawal v. Directorate General of GST Intelligence (DGGI). The case involved allegations of wrongful availment and passing of fake Input Tax Credit amounting to ?17.18 crore under the CGST Act.

The Court noted that the investigation had substantially progressed and the accused was no longer required for custodial interrogation. It considered the period already spent in custody, the stage of investigation and the possibility of the accused cooperating with the proceedings.

The High Court observed that the purpose of bail is to ensure the presence of the accused during investigation and trial. Continued detention should not become a form of punishment before guilt has been established.

Accordingly, the Court granted regular bail subject to appropriate conditions. The petitioner was directed to cooperate with the investigation and appear before the investigating agency and trial court whenever required.

The Court also clarified that granting bail does not amount to expressing any opinion on the merits of the allegations. The prosecution remains free to prove its case during trial, and the trial court must decide the matter independently on the basis of evidence.

The ruling reinforces the principle that the seriousness of an alleged GST offence is an important consideration, but it cannot be the sole ground for indefinite incarceration when the investigation has substantially progressed and custody is no longer necessary.

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CAPS