Fakrul Islam @ Mohammad Fakrul @ Md Fakrul Islam And Anr. vs. State Of Assam

Held

The Court rejected the bail application. Regarding Issue 1, the Court found that Annexure-8 and Annexure-11, relied upon by the petitioners, pertained to a period prior to the FIR and were not specifically related to the allegations in the instant case, thus holding no relevancy to the bail plea at this stage. Concerning Issue 2, the Court perused the case diary, including statements under Section 164 Cr.P.C., and found prima facie evidence that the accused-petitioners and others were running an illegal syndicate for export and import of coal, transporting excess quantities, operating without paying GST or using fake documents, and stocking coal without licenses. The Court noted evidence of fake registration number plates being used and that the investigation was ongoing. The Court opined that granting bail at this stage would likely hamper the ongoing investigation. The investigating officer was directed to expedite the investigation. The ratio decidendi is that in cases involving serious allegations of economic offenses like illegal trade, forgery, and tax evasion, where investigation is at a preliminary stage and granting bail could impede it, bail applications are likely to be rejected.

Facts

The petitioners, Fakrul Islam and Muktar Hussain, sought bail in Karimganj P.S. Case No. 535/2021, registered under various sections of the Indian Penal Code. They were arrested on May 31, 2021. The petitioners claimed to be engaged in the export and import of coal and other items with valid documents and GST payments, asserting their arrest and detention were illegal. They referred to reports from the Assistant Commissioner of Taxes and minutes of a meeting concerning export-import issues. The State opposed the bail application, alleging forgery of documents for illegal coal and limestone export/import between India and Bangladesh, and stocking of materials without licenses, causing significant GST and sales tax loss. The FIR detailed the seizure of 11 coal-laden trucks based on secret information, suspected of carrying illegally stocked or stolen coal, transported using forged documents.

Key Issues

1. Whether the detention of the accused-petitioners is illegal, warranting their release on bail, considering their alleged involvement in the export and import business with due legal documentation and GST payments, as argued by the petitioners? 2. Whether the allegations of forgery of documents for illegal transportation of coal and other materials, stocking without licenses, and causing huge loss of GST and sales tax to the state, as put forth by the State, warrant continued judicial custody pending investigation? Petitioner's Contentions: The petitioners argued that they were illegally arrested and detained despite conducting their export-import business with due legal documents and paying GST. They relied on Annexure-8 (report from Assistant Commissioner of Taxes) and Annexure-11 (minutes of a meeting regarding export-import issues) to support their claim of legal operations. They sought bail subject to conditions. State's Contentions: The State contended that the case involved forgery of documents for illegal cross-border trade of coal and limestone, transportation of materials in excess of GST paid quantities, stocking without licenses, and causing significant loss to the state exchequer. They described it as a "coal syndicate case" involving illegal export-import activities through fake GST or fake invoices, requiring in-depth investigation at a preliminary stage. The FIR detailed methods used, including sourcing coal from illegal mines, misrepresenting origin, paying GST on lesser volumes, and using forged e-way bills and GST invoices.