Punjab & Haryana HC Grants Bail in ₹48.79 Crore GST Fraud Case as Accused Spent Over 6 Months in Custody [Read Order]

In a recent ruling, the Punjab and Haryana High Court granted regular bail to a man accused in a Rs. 48.79 crore GST fraud case, stating that he had already spent over six months in custody and further detention was not justified.

Manoj Gupta filed a bail petition after his earlier application was rejected by the Additional Sessions Judge, Ludhiana. He was arrested on 21.12.2024 in connection with a complaint filed by the Directorate General of GST Intelligence. The authorities alleged that he had operated four firms two in his own name and two in fictitious names and had issued fake invoices to wrongfully avail and pass on Input Tax Credit (ITC) of Rs. 48.79 crore.

The petitioner’s counsel argued that his arrest violated procedural safeguards under the CGST Act, including failure to follow Section 73, and that no authorization or proper notice had been issued before arrest. It was also argued that he had no prior criminal record, posed no flight risk, and had fully cooperated with the authorities.

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The government’s counsel opposed the bail, arguing that the petitioner had actively committed a serious economic offence, causing substantial loss to the exchequer. They submitted that releasing him could allow him to influence witnesses or others involved in the alleged fraud.

The single-judge bench comprising Justice Manisha Batra observed that the allegations were serious, the offence was punishable with a maximum of five years, the evidence was mostly documentary in nature, and the prosecution had not sought custodial interrogation. The court also observed that the risk of tampering with evidence was minimal as the documents were official and the witnesses were mostly government employees.

The court held that the petitioner’s continued detention was not necessary and that bail could be granted subject to conditions. The court directed the petitioner to surrender his passport, not dispose of any assets under investigation, avoid criminal activity, and cooperate fully with the trial. The writ petition was allowed and bail was granted.

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