Facts of the Case

Shahbaz Alam sought bail in a case arising from an FIR alleging that co-accused Nikhat Bano, wife of MLA Abbas Ansari (lodged in Chitrakoot Jail), was found spending hours with her husband in a room outside his barrack during a surprise jail inspection, with allegations of jail staff complicity and the applicant's alleged role in handling extortion money. The applicant, a former employee (until 2016) at a Chartered Accountancy firm where he used to handle GST-related work, was not named in the original FIR or the first three charge-sheets, but was implicated in a fourth charge-sheet filed on 22.05.2023, based on a statement by a CA firm colleague alleging he had opened bank accounts in others' names without their knowledge.

Issues Involved

  1. Whether the applicant, implicated late in the investigation and accused only of operating bank accounts opened in others' names, was entitled to bail in a case involving extortion, criminal conspiracy, and related offences.

Petitioner's Arguments

  • The applicant had no criminal history, was falsely implicated, and had already been in jail since 24.03.2023.
  • The two individuals in whose names the bank accounts were allegedly opened had, in their own statements to the investigating officer, not levelled any allegation against the applicant, implicating only a co-accused.

Respondent's Arguments

  • The applicant was actively involved in handling extortion money collected on behalf of a co-accused and depositing it in accounts of other persons; a co-accused was still absconding, and the applicant's release could be detrimental to the investigation.

Court Order / Findings

  • The Court found that although one witness alleged the applicant opened bank accounts in others' names without their knowledge, the two account-holders themselves had not made any allegation against the applicant in their own statements.
  • Given the applicant's lack of criminal history, his having already been in custody for an extended period, five co-accused already being on bail (including one granted bail by the Supreme Court), and the fact that the maximum punishment for the alleged offences was seven years, the Court held it a fit case for bail.
  • Bail was granted subject to standard conditions, including cooperation with the trial and non-tampering with evidence.

Important Clarification

This is a bail order in a criminal conspiracy/extortion case connected to a jail-security breach involving a sitting MLA — it has no GST law content. The reference to the applicant's earlier employment doing 'GST related work' at a Chartered Accountancy firm is only background information used to describe his professional history and is unrelated to any tax issue in the case.

Sections Involved

  • Indian Penal Code, 1860 — Sections 387, 222, 186, 506, 201, 120-B, 195-A, 451, 511, 34
  • Prevention of Corruption Act, 1988 — Section 8
  • Prisoners Act — Sections 42-B and 54; Criminal Law Amendment Act — Section 7

Decision – In Favour of

Decided in favour of the applicant — bail was granted subject to standard conditions.

Case Details

  • Court: High Court of Judicature at Allahabad, Lucknow Bench (Neutral Citation: 2023:AHC-LKO:66094)
  • Case No.: Criminal Misc. Bail Application No. 8694 of 2023
  • Coram: Justice Subhash Vidyarthi
  • Date of Order: 11 October 2023

Link to Download the Order

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