Jharkhand HC grants bail to Rs. 22 crores GST Fraud Accused noting 4 months Custody [Read Order]
The court found no convincing reason to keep the petitioner in custody pending trial, noting that he had been detained for about four months and that the investigation phase was finished.
The Jharkhand High Court has granted bail to an accused of evading Goods and Services Tax ( GST ) worth ₹22 crore as the accused had already spent about four months in judicial custody and the investigation was conluded.
The petitioner, Mohammad Faisal Khan was arrested in connection with Complaint Case No. 3207 of 2025 relating to alleged offences under Sections 132(1)(b), 132(1)(c), 132(1)(f), 132(1)(i) and 132(5) of the CGST Act, as well as offences under Sections 61, 316 and 322 of the Bharatiya Nyaya Sanhita, pending before the Special Judge, Economic Offences, Jamshedpur.
The Directorate General of GST Intelligence (DGGI) alleged that Khan had engaged in large-scale evasion across multiple financial years, causing revenue loss exceeding ₹22 crore.
During the bail hearing, counsel for the petitioner submitted that the prosecution report had already been filed and that the maximum punishment prescribed for the alleged GST offences is five years’ imprisonment.
He argued that the petitioner’s lengthy custody for approximately four months made continued detention unjustified when the trial was yet to begin.
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The DGGI opposed the plea, stating that the depth of the alleged tax evasion required denial of bail.
Justice Ambuj Nath ruled that the accused's time in detention could not be ignored regardless of his allegations of tax evasion. Furthermore, the court found no convincing reason to keep the petitioner in custody pending trial, noting that he had been detained for about four months and that the investigation phase was finished.
Accordingly, the High Court ordered that the petitioner be released on bail upon furnishing a bond of ₹20,000 with two sureties of like amount, to the satisfaction of the Special Judge, Economic Offences, Jamshedpur.
Mr. Manish Sharma & Mr. Prabhat Kumar, Advocates appeared for the petitioner and Mr. P.C. Sinha, A.C to G.A-III and Mr. P.A.S. Pati, Advocate appeared for the respondents.
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