Hifzur Rahman Choudhury vs. The State Of Assam

Held

The Court held that the petitioner is not entitled to pre-arrest bail. The Court found prima facie evidence from the case diary indicating that the petitioner is indeed involved in the coal export business at Karimganj, Assam. There is evidence suggesting that the petitioner and others are operating an illegal syndicate for coal export and import between India and Bangladesh, involving transportation of coal in excess of truck capacity, evasion of GST through fake documents, and stocking of coal without the required licenses. The use of fake truck registration plates was also noted. The Court observed that the petitioner had not produced any legal documents to support his claims during his statement. Given the serious economic implications for the state and the prima facie evidence against the petitioner, the Court concluded that granting pre-arrest bail would likely impede the ongoing multifaceted investigation. Consequently, the interim pre-arrest bail order was vacated, and the application was rejected.

Facts

The petitioner, Hifzur Rahman Choudhury, sought pre-arrest bail under Section 438 Cr.P.C. in connection with Karimganj P.S. Case No. 535/2021, which involves charges of forgery, illegal transportation of coal and limestone, and causing loss to the State through GST evasion. The FIR alleged the seizure of 11 coal-laden trucks suspected of being illegally stocked or stolen and transported using forged documents. The allegations include sourcing coal without paying loyalty or transit permits, misrepresenting the origin of coal, paying GST on lesser volumes than transported, stocking coal without licenses, and using fake truck registration numbers. The petitioner claimed innocence, stating he is a farmer and not involved in coal export. He had previously appeared before the Investigating Officer and given a statement under Section 161 Cr.P.C. as per an interim pre-arrest bail order.

Key Issues

1. Whether the petitioner is entitled to pre-arrest bail under Section 438 Cr.P.C. in connection with Karimganj P.S. Case No. 535/2021, considering the allegations of economic offenses and potential obstruction of investigation? (Question of law and fact, turning on Section 438 Cr.P.C. and principles of bail in economic offenses). Petitioner's arguments: The petitioner is innocent and falsely implicated. He is a farmer by profession and not involved in coal export business. He has cooperated with the investigation by appearing before the Investigating Officer and giving his statement under Section 161 Cr.P.C. Revenue/State's arguments: The allegations involve forgery of documents for illegal transportation of coal and limestone, involving export and import between India and Bangladesh, and transporting materials in excess of GST paid volumes. This constitutes a coal syndicate case where GST is evaded through fake invoices or under-reporting. The investigation is in its preliminary stage and requires in-depth inquiry. The case involves significant economic interest of the state, and granting bail would hamper the ongoing investigation.