Shahnawaj vs. State Of U.P.

Held

The Court allowed the bail application without touching the merits of the case. The primary reasoning was that the applicant's name surfaced only from the statement of a co-accused, Mohd. Faizal, who had already been granted bail by a coordinate bench. The Court noted that, apart from the co-accused's statement and the applicant's disclosure statement, there was no other incriminating material on record. Consequently, the Court found the applicant entitled to be released on bail. The operative direction was to release the accused/applicant on bail upon furnishing a personal bond and two sureties to the satisfaction of the court concerned, referencing Supreme Court dictums in Girish Gandhi Vs. State of Uttar Pradesh and Policy Strategy for grant of bail in re. The applicant was also directed to cooperate in the judicial process for fair and speedy disposal.

Facts

This case involves a bail application filed by Shahnawaj, accused in a case registered by GST officials. The FIR was lodged on 11.04.2026 concerning alleged GST fraud by M/s. National Traders, which claimed input tax credit of Rs. 4 lakh despite its GST number not being renewed after 2022. The applicant was implicated based on the disclosure statement of a co-accused, Mohd. Faizal, who allegedly received fake bills from the applicant for various companies, including M/s. National Traders. Mohd. Faizal has already been granted bail. The applicant has been in jail since 11.06.2026, and a charge sheet has been filed. No incriminating material was recovered during the investigation, and the applicant has no criminal history.

Key Issues

1. Whether the applicant is entitled to be released on bail in Case Crime No. 0365 of 2026, under Sections 318(4), 338, 336(3), 340(2), 61(2) of BNS, P.S.- Majhola, District- Moradabad, considering the facts and circumstances of the case and the prevailing legal principles for grant of bail? Petitioner's Arguments: The applicant's counsel argued that the applicant's involvement is solely based on the statement of a co-accused, Mohd. Faizal, who has already been granted bail. They emphasized the lack of any other incriminating material recovered during the investigation, the applicant's clean criminal history, and the nascent stage of the trial. The applicant has been incarcerated since 11.06.2026. Revenue/State's Arguments: The learned A.G.A. for the State opposed the bail application.