Gaurav Maheshwari vs. State

Held

The Court allowed the bail application, finding it just and proper to grant bail to the petitioner under Section 439 Cr.P.C. The Court noted that the police had filed a charge-sheet against the petitioner for offenses triable by a Magistrate, and the investigation had been completed. Considering the totality of the facts and circumstances, and importantly, the undertaking offered by the petitioner, the Court decided to grant bail. The petitioner was to be released on furnishing a personal bond of Rs. 1,00,000/- and two sureties of Rs. 50,000/- each. He was also required to furnish an undertaking in the Trial Court incorporating the four conditions offered, and his family members were to furnish undertakings regarding property non-alienation. The Court also directed that copies of the order be sent to the Department of Passport and the Institute of Chartered Accountants for information. The ratio decidendi is that when investigation is complete, charge-sheet is filed for offenses triable by a Magistrate, and the accused offers reasonable undertakings to secure recovery and prevent future prejudice, bail can be granted.

Facts

The petitioner, Gaurav Maheshwari, sought bail under Section 439 of the Cr.P.C. in connection with an offense under Section 132(1)(i) of the Rajasthan GST Act, 2017. The petitioner had been in judicial custody since October 30, 2019. The prosecution alleged that the petitioner was involved in fraudulent transactions, creating bogus firms to claim GST refunds for non-existent transactions, amounting to approximately Rs. 17 crores, with only about Rs. 1 crore recovered. The GST Department argued that the petitioner was the kingpin, that recovered money was deposited in relatives' accounts, and that releasing him could hinder recovery and influence witnesses. The petitioner offered several conditions for his release, including property non-alienation, passport surrender, bank account disclosure, and withdrawal limits.

Key Issues

1. Whether the petitioner is entitled to be released on bail under Section 439 of the Cr.P.C. given the allegations of fraudulent transactions under Section 132(1)(i) of the Rajasthan GST Act, 2017, and the stage of investigation? Petitioner's arguments: The petitioner argued that he had been in custody since October 30, 2019, for offenses triable by a Magistrate. He also pointed out that he had been granted bail by the same court in another case with identical allegations. He further offered specific undertakings to secure his release, including restrictions on property alienation, passport surrender, and bank account withdrawals. Respondent's arguments: The State and the GST Department opposed the bail application. They contended that the petitioner had defrauded the exchequer of a significant amount (Rs. 17 crores) through fraudulent transactions and bogus firms, with limited recovery. They expressed concerns that his release could lead to influencing witnesses and make the recovery of public money difficult.