Rakesh Bhabhutmal Jain vs. State Of Chhattisgarh

Facts

The applicant, Rakesh Bhabhutmal Jain, is seeking regular bail in connection with a criminal case registered for offences under Sections 420, 467, 468, and 471 of the IPC. The prosecution alleges that the applicant, acting as a tax consultant, misappropriated KYC documents of the complainant to fraudulently register shell entities like "Somvati Trading Agency Private Company" and "Artech Solution" without the complainant's knowledge. These fictitious companies were allegedly used to procure unauthorized loans from various financial institutions, involving forgery of signatures and use of a stranger's photograph. The applicant has been in jail since February 16, 2026. The charge sheet has been submitted, and the applicant claims innocence, arguing that financial transactions between the complainant's company and one of the alleged shell entities indicate the complainant's awareness. The applicant also points out that GST registration requires verification steps that would be difficult to bypass without the complainant's involvement.

Held

The Court granted bail to the applicant. The Court considered the facts and circumstances of the case, noting that the charge sheet had already been submitted against the applicant. It also took into account the applicant's submission regarding one criminal antecedent under the PC Act, which is pending, and the fact that the applicant has been in jail since February 16, 2026. Given that the conclusion of the trial is likely to take time, the Court was of the view that the applicant is entitled to be released on bail. The applicant was directed to be released on bail upon furnishing a personal bond with two local sureties to the satisfaction of the concerned Court. Specific conditions were imposed, including an undertaking not to seek adjournments when witnesses are present, to remain present before the trial court, and to face proceedings for misuse of liberty or absence as per the Bharatiya Nyaya Sanhita and Bhartiya Nagarik Suraksha Sanhita. The Court did not expressly leave any issue undecided.

Key Issues

1. Whether the applicant is entitled to be released on regular bail under Section 483 of the Bhartiya Nagarik Suraksha Sanhita, 2023, considering the allegations of forgery, cheating, and financial fraud amounting to Rs. 45,88,416/-. Petitioner's arguments: The applicant contends that he is innocent and has been falsely implicated. He argues that the complainant was aware of the company "Artech Solution" due to prior financial transactions and was a partner in "Artech Solutions" and director in "Somvatti company," enjoying profits and paying income tax. The applicant asserts that the company and GST registration processes involve multiple verification steps, including Aadhaar card verification via biometrics, making it impossible to forge the entire process without the complainant's knowledge. The applicant also notes that the complainant received GST notices at his residential address, suggesting he received other communications regarding firm and GST registration. The applicant has one pending criminal antecedent under the PC Act and has been incarcerated since February 16, 2026. Non-applicant's arguments: The State opposes the bail application. It is stated that the charge sheet has been submitted against the applicant and that the applicant does not have any criminal antecedents (this appears to be a contradiction with the applicant's submission, but is noted as stated by the non-applicant). Therefore, the bail application should be rejected.