Businessman accused of ₹9.34 Cr GST Evasion Seeks Bail: Gujarat HC Grants Relief Subject to Deposit and Conditions [Read Order]

The bail application was filed under Section 483 of the Bharatiya Suraksha Sanhita, 2023 in relation to offences under Sections 132(1)(a), (b), and (c) of the Central Goods and Services Tax Act, 2017 by the accused Vikas Naresh Chandra Kansal.

It was alleged that Universal Enterprises failed to pay ₹4.37 crore in GST, while another entity, VNG Packaging Pvt. Ltd., had not deposited ₹4.99 crore, taking the combined figure to ₹9.34 crore.

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According to the prosecution, searches were conducted at multiple business and residential premises linked to the applicant between August 22 and August 28, 2025, during which several documents and electronic records were seized.

Despite initially being summoned as a witness under Section 70 of the CGST Act, Kansal was arrested on August 26, 2025, without what the defense termed as the “subjective satisfaction” or “reason to believe” required under Section 69.

Senior Advocate J.S. Unwala, appearing for the applicant, argued that Kansal had cooperated during the investigation and was willing to demonstrate his bona fides by depositing 50% of the alleged tax amount. The defense also pointed out that the applicant had already paid ₹84 lakh to the GST Department.

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After hearing both sides, Justice R.T. Vachhani observed that substantial investigation was already over, no prior criminal antecedents were reported against the applicant, and there was no apprehension of absconding or tampering with evidence. Considering these factors, the Court allowed the bail application with specific conditions.

The High Court directed the release of the accused on regular bail upon executing a bond of ₹10,000 with one surety of an equal amount. The bail was granted subject to strict conditions that he shall not misuse the liberty or act in any manner prejudicial to the prosecution’s interest, shall not leave India without prior permission of the Sessions Court, and shall cooperate fully with the investigating agency whenever required.

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The Court also directed him to deposit his passport before the concerned court and furnish his complete residential address to the investigating officer, with any change of residence permitted only with prior approval of the Sessions Court.

The Court clarified that the bail would take effect only if the applicant was not wanted in any other case. It also allowed the trial court to modify or relax the conditions as deemed fit.

Justice Vachhani also said that the trial court would proceed uninfluenced by any observations made in the present bail order, which were purely of a preliminary nature.

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