Facts of the Case

The petitioners filed petitions under Section 438 of the Code of Criminal Procedure seeking anticipatory bail in connection with an FIR registered by the Vigilance Bureau, Punjab relating to an alleged GST tax evasion scam.

The FIR alleged large-scale tax evasion involving officials of the Goods and Services Tax (GST) Department, transporters, passers and dealers. During investigation, the names of the petitioners surfaced primarily on the basis of disclosure statements recorded during investigation.

The petitioners sought anticipatory bail claiming parity with a co-accused who had already been granted anticipatory bail by the High Court in the same FIR under similar circumstances.

 

Issues Involved

  1. Whether the petitioners were entitled to anticipatory bail under Section 438 CrPC.
  2. Whether the principle of parity with a co-accused who had already been granted anticipatory bail was applicable.
  3. Whether disclosure statements alone constituted sufficient material to deny anticipatory bail.
  4. Whether apprehension of the petitioners leaving the country justified refusal of pre-arrest bail.

 

Petitioners' Arguments

  • The petitioners contended that they stood on the same footing as the co-accused who had already been granted anticipatory bail.
  • They argued that there was no independent evidence establishing their involvement apart from disclosure statements.
  • They submitted that the principle of parity required similar treatment.
  • To address the State's concern regarding the possibility of absconding, the petitioners voluntarily agreed to surrender their passports, if possessed.

 

Respondent's Arguments

The State opposed the grant of anticipatory bail on the following grounds:

  • The allegations pertained to a serious GST tax evasion scam involving multiple persons.
  • Considering the gravity of the allegations, anticipatory bail should not be granted.
  • There was a possibility that the petitioners might leave the country.

However, the State was unable to distinguish the petitioners' case from that of the co-accused who had already been granted anticipatory bail on similar facts.

 

Court Order / Findings

The Punjab & Haryana High Court observed that:

  • The petitioners were similarly situated to the co-accused who had already been granted anticipatory bail.
  • The State failed to demonstrate any distinguishing circumstances warranting different treatment.
  • The principle of parity was applicable in the present case.
  • The petitioners' willingness to surrender their passports adequately addressed the apprehension that they might leave the country.

Accordingly, the Court granted anticipatory bail to the petitioners subject to the following conditions:

  • They shall join the investigation within one week.
  • They shall appear before the Investigating Officer whenever required.
  • In the event of arrest, they shall be released on furnishing adequate bail bonds.
  • They shall comply with all conditions prescribed under Section 438(2) CrPC.
  • They shall deposit their passports, if they possess any.
  • The State would remain at liberty to seek appropriate remedies if the petitioners failed to cooperate with the investigation or if circumstances changed.

The petitions were accordingly allowed.

 

Important Clarification

  • Mere seriousness of allegations does not automatically justify denial of anticipatory bail where the accused stands on the same footing as a co-accused already granted such relief.
  • The principle of parity is an important consideration while deciding anticipatory bail applications.
  • Disclosure statements without additional incriminating material may not be sufficient to deny anticipatory bail.
  • Courts may impose safeguards such as surrender of passports and mandatory cooperation with investigation while granting pre-arrest bail.
  • The State retains liberty to seek cancellation or modification of bail if the accused fails to comply with the conditions imposed by the Court.

Sections Involved

Code of Criminal Procedure, 1973

  • Section 438 – Anticipatory Bail
  • Section 438(2) – Conditions for Grant of Anticipatory Bail

Prevention of Corruption Act, 1988

  • Section 7
  • Section 7A
  • Section 8

Indian Penal Code, 1860

  • Section 420 – Cheating
  • Section 465 – Forgery
  • Section 467 – Forgery of Valuable Security
  • Section 468 – Forgery for Purpose of Cheating
  • Section 471 – Using Forged Document as Genuine
  • Section 201 – Causing Disappearance of Evidence
  • Section 120-B – Criminal Conspiracy

Link to download the order -

https://mytaxexpert.co.in/uploads/1782969302_172compressed.pdf

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