Facts of the Case

This is an Indian Penal Code cheating and forgery case, not a GST dispute — GST appears only as one of several heads under which the victim was asked to pay money to the fraudsters. The applicants, Dilip Kumar and, in a connected application, Afroz Ahmed and Shiv Bahadur Pal, sought regular bail under Section 439 CrPC in connection with Crime No. 748 of 2022 registered at Police Station Khairagarh, Chhattisgarh, for offences under Sections 420, 467, 468, 471, 201 and 34 IPC, along with Section 66(D) of the Information Technology Act, 2000.

According to the complainant, the owner of Lucky Garments, Khairagarh, he received calls from unknown persons offering a loan, and after depositing an initial insurance amount of Rs. 18,199, he was later told to deposit further amounts described as "process charges, GST and other taxes," eventually paying a total of Rs. 44,56,047 across various dates. No loan amount was ever disbursed, and when he sought a refund, further "cancellation charges" were demanded instead. A charge-sheet was filed after investigation, and the applicants' first bail applications (filed earlier) had already been dismissed as withdrawn, with liberty to revive after the complainant's examination.

Issues Involved

  1. Whether the applicants, facing trial for cheating and forgery in a fake loan scheme, were entitled to regular bail under Section 439 CrPC, given that a compromise had reportedly been reached with the complainant.

Petitioner's Arguments

  • The applicants argued they were innocent and falsely implicated, and that a compromise had taken place with the complainant, on the basis of which the trial court had already acquitted them of a related Section 420/34 IPC charge in another proceeding.
  • They contended there was no evidence they had received the money directly or contacted the complainant themselves, and that they were named only on the basis of a co-accused's memorandum.
  • They pointed out they had been in custody since December 2022 for offences triable by a Magistrate, and were willing to furnish security and abide by bail conditions.

Respondent's Arguments

  • The State, through its counsel, opposed the bail applications, though the specific grounds of opposition are not elaborated in the order beyond a general contest.

Court Order / Findings

  • The Court, considering the compromise between the applicants and the complainant, the nature of allegations, and the fact that the applicants had been in custody since December 2022, allowed the second bail applications.
  • The applicants were directed to be released on regular bail on furnishing a personal bond of Rs. 25,000 each with one local surety, and to appear before the trial court on every hearing date until the trial concludes.

Important Clarification

GST features in this case only as one component of the money the fraudsters extracted from their victim by posing as a loan agency — there is no GST assessment, demand, or interpretation issue involved at all. The order is a routine bail grant based on compromise and custody period under the IPC and IT Act, and has no bearing on GST law or GST enforcement.

Sections Involved

  • Indian Penal Code, 1860 – Sections 420, 467, 468, 471, 201, 34
  • Information Technology Act, 2000 – Section 66(D)
  • Code of Criminal Procedure, 1973 – Section 439 (regular bail)

Decision – In Favour of

Decided in favour of the applicants, Dilip Kumar, Afroz Ahmed and Shiv Bahadur Pal, who were granted regular bail; this is a bail order and not an adjudication of guilt or innocence, and has no connection to GST law.

Case Details

  • Court: High Court of Chhattisgarh, Bilaspur
  • Case Nos.: MCRC No. 5193 of 2023 and MCRC No. 5213 of 2023
  • Coram: Hon'ble Shri Justice Sanjay Kumar Jaiswal
  • Date of Order: 22.08.2023

Link to Download the Order

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