Facts of the Case

The petitions were filed by Rajinder Singh @ Lovely and six other accused seeking regular bail in connection with FIR No. 8 dated 21.08.2020, registered by the Vigilance Bureau, SAS Nagar (Mohali), Punjab.

The FIR alleged a large-scale Goods and Services Tax (GST) evasion racket operating in Punjab. According to the prosecution, information was received regarding systematic tax evasion, following which mobile phones of certain co-accused were lawfully intercepted.

The investigation allegedly revealed the involvement of GST officials, traders, transporters and middlemen. It was alleged that monthly bribes were paid to GST officials who, in conspiracy with others, permitted inter-State and intra-State transactions without proper accounting or payment of GST, thereby enabling fraudulent availment of bogus Input Tax Credit (ITC).

The petitioners were implicated during the investigation and were arrested between August and September 2022. Investigation against them had been completed and the charge-sheet (challan) had already been filed.

 

Issues Involved

  1. Whether the petitioners were entitled to regular bail after completion of investigation.
  2. Whether continued custody was justified when the charge-sheet had already been filed.
  3. Whether delay in commencement of trial due to pending sanction against public servants justified grant of bail.
  4. Whether parity with co-accused already released on bail should be extended to the petitioners.

 

Petitioner’s Arguments

The petitioners submitted that:

  • Investigation against them had been completed.
  • The challan had already been presented before the competent court.
  • Their names surfaced during interrogation of co-accused.
  • Trial was unlikely to commence or conclude in the near future because sanction for prosecution of GST Department officials had not yet been granted.
  • Several similarly placed co-accused had already been granted bail by the High Court.
  • Continued incarceration would serve no useful purpose once investigation stood completed.

 

Respondent’s Arguments

The State opposed the grant of regular bail.

However, on instructions from the Vigilance Bureau, the State fairly admitted that:

  • Investigation against the petitioners had been completed.
  • The challan had already been filed.
  • Sanction for prosecution of departmental officials was still awaited.

The State nevertheless opposed the bail applications considering the seriousness of the allegations.

 

Court Order / Findings

The Punjab & Haryana High Court allowed all the bail petitions.

The Court observed that:

  • Investigation against the petitioners was complete.
  • The charge-sheet had already been filed.
  • Co-accused had already been granted regular bail.
  • The trial was likely to take considerable time since prosecution sanction against departmental officials was still awaited.
  • Continued detention was therefore not warranted.

Accordingly, the Court granted regular bail to all petitioners subject to furnishing appropriate bail bonds before the concerned Chief Judicial Magistrate/Duty Magistrate.

The Court also clarified that the observations made while granting bail should not be treated as an opinion on the merits of the prosecution case.

 

Important Clarification

The High Court specifically clarified that:

  • Grant of bail does not amount to an expression on the merits of the allegations.
  • The prosecution shall continue independently during trial.
  • The observations in the bail order shall not prejudice either party during the trial proceedings.

 

Sections Involved

Prevention of Corruption Act, 1988

  • Section 7 – Public servant taking undue advantage
  • Section 7A – Taking undue advantage to influence a public servant
  • Section 8 – Bribery relating to public servants

Indian Penal Code, 1860

  • Section 420 – Cheating
  • Section 465 – Punishment for forgery
  • Section 467 – Forgery of valuable security, will, etc.
  • Section 468 – Forgery for the 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://www.mytaxexpert.co.in/uploads/1783932584_196compressed.pdf

 

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