Facts of the Case

The petitioner, Narender Kumar, was arrested on 04.06.2025 by officers of the Directorate General of GST Intelligence (DGGI), Delhi Zonal Unit during a GST fraud investigation involving bogus Input Tax Credit (ITC) claims amounting to approximately ₹11.50 crores. The petitioner alleged that his arrest was carried out without prior notice under Section 41A Cr.P.C. or Section 35 BNSS and that documents including the grounds of arrest were furnished only after a delay, violating principles of natural justice and due process. He claimed coercion in obtaining his statements and that the prosecution had no other incriminating evidence apart from such statements. He also submitted that he had deep societal roots, no criminal antecedents, and compelling humanitarian grounds due to familial responsibilities and health issues. The petitioner’s earlier bail applications before lower courts were dismissed. 

Issues Involved

  1. Whether the arrest of the petitioner was in accordance with statutory safeguards under BNSS, Cr.P.C., and departmental guidelines for GST investigations.
  2. Whether the petitioner is entitled to regular bail under Section 483 BNSS read with Section 439 Cr.P.C. in light of the nature of allegations, evidence, and period of custody.
  3. Whether the investigation being ongoing against an absconding co‑accused could be a ground to deny bail. 

Petitioner’s Arguments

• Arrest was irregular for want of prior notice and delayed provision of arrest memo.
• Statements were obtained under duress and signed without understanding.
• No corroborative evidence besides statements under Section 70 CGST Act.
• Investigation was complete, charge sheet filed, no risk of tampering evidence.
• Humanitarian grounds (health of petitioner and family hardship).
• Fundamental right to liberty outweighs general apprehension by the prosecution. 

Respondent’s Arguments

• Petitioner was part of a GST fraud ring involving creation of dummy firms to claim bogus ITC.
• Investigation still ongoing in respect of other accused.
• Delay in bail applications and conduct of the petitioner justified denial at earlier stages.
• Severity and complexity of the offence warrant detention until trial. 

Court’s Findings & Order

The Court applied settled principles for bail in GST offences under Section 132 CGST Act, referencing key Supreme Court rulings such as Vineet Jain v. Union of India and Ratnambar Kaushik v. Union of India that emphasize:

  • Bail should ordinarily be granted where evidence is primarily documentary, investigation complete and no exceptional circumstances exist to deny liberty.
  • Mere ongoing investigation against other co‑accused is not a ground to refuse bail if evidence against the applicant is already before the Court and there is no likelihood of tampering witnesses.

The Court held that:

  • The petitioner had been in custody for over 65 days, investigation and charge sheet filed.
  • No antecedents or credible risk of tampering evidence.
  • No extraordinary circumstances to deny bail.

Result: Regular bail granted on conditions including personal bond and non‑interference with prosecution witnesses. 

Important Clarifications

• Bail standards in GST cases emphasize balance between liberty and prosecution’s interest; documentary evidence and completion of investigation weigh in favor of bail.
• Delay in provision of arrest memo and procedural irregularities can support bail but are considered along with totality of circumstances.
• Ongoing investigation against other persons does not constitute a bar to granting bail where the accused’s role is distinct and trial evidence is primarily documentary.

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/NBK08102025BA30652025_192920.pdf 

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