Ramakant Pal S/O Radhey Shyam Pal vs. State Of Gujarat

Held

The Court held that the applicant is entitled to be released on bail. The reasoning was based on the fact that the applicant has been in jail since April 2026, the investigation has been completed, and a complaint has been filed. The Court noted that the department had secured some financial stake and seized computer gadgets and e-ledgers. It also observed that there were no chances of an early disposal of the criminal case and that the maximum sentence for the alleged offence is five years. The Court further stated that the department's case rests on documentary evidence, and therefore, further detention of the applicant is not necessary. The ratio decidendi is that prolonged incarceration after investigation completion, coupled with documentary evidence and a limited maximum sentence, can warrant the grant of bail in economic offence cases. The applicant was ordered to be released on regular bail upon executing a personal bond of Rs. 1,00,000/- with one surety of like amount, subject to several conditions including not misusing liberty, not acting against prosecution interests, surrendering his passport, not leaving India without permission, providing his latest address, and cooperating in the trial.

Facts

The applicant, Ramakant Pal, is a Director of M/s. WLTPE, a company engaged in providing E-Top up services. The Directorate General of GST Intelligence (DGGI) alleged that the company and its directors engaged in a systematic fraud by issuing fake invoices totaling Rs. 351.19 crores (Input Tax Credit Rs. 63.21 crores) to 18 beneficiary companies without any underlying supply of e-top up services. This allegedly caused substantial loss to government revenue. Searches were conducted, statements were recorded, and the applicant has been in jail since April 2026. A complaint case was filed under various sections of the CGST Act, 2017, and the Bharatiya Nagrik Suraksha Sanhita, 2023. The applicant sought regular bail.

Key Issues

1. Whether the applicant, Ramakant Pal, is entitled to regular bail under Section 483 of the Bharatiya Nagrik Suraksha Sanhita, 2023, considering his period of incarceration since April 2026, the completion of investigation and filing of the complaint, and the nature of the alleged offences under the CGST Act, 2017? Petitioner's Arguments: The applicant has been in jail since April 2026. The investigation is complete, and a complaint has been filed. Further custody would not serve any purpose. Given the potential punishment and the remote possibility of an early disposal of the case, the applicant should be enlarged on bail with appropriate conditions. Revenue's Arguments: The respondent (State of Gujarat and DGGI) contended that there is a prima facie case for the commission of an economic offence by the applicant, who is alleged to be the mastermind. Considering the larger public interest, no case is made out for exercising judicial discretion, and the application should be dismissed.