Gaurav vs. State

Held

The Court allowed the bail application under Section 439 Cr.P.C. The Court noted that the police had completed their investigation and filed a charge-sheet against the petitioner for offences triable by a Magistrate. Considering the totality of the facts and circumstances, and importantly, the undertakings offered by the petitioner, the Court found it just and proper to grant bail. The petitioner was directed to furnish 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 within two weeks of his release, incorporating the conditions he had proposed, including non-alienation of property by himself and his close family members, passport surrender, disclosure of bank accounts, and a monthly withdrawal limit. The Court also stipulated that the petitioner must appear on all hearing dates. The ratio decidendi is that when an investigation is complete, a charge-sheet is filed for offences triable by a Magistrate, and the accused offers reasonable and verifiable undertakings to secure the investigation and recovery, bail can be granted.

Facts

The petitioner, Gaurav S/o Shri Sampat Lal Maheshwari, sought bail under Section 439 of the Cr.P.C. in connection with CR No. 205/2019, Police Station Udaimandir, Jodhpur, for offences including Sections 420, 406, 467, 468, and 471 IPC. The petitioner had been in judicial custody since October 30, 2019. The GST Department alleged that the petitioner had fraudulently obtained approximately Rs. 17 crores by creating bogus firms and claiming GST refunds for non-existent transactions, with only about Rs. 1 crore recovered. The department contended that the petitioner was the kingpin, that withdrawn money was deposited in relatives' accounts, and that his release could hinder recovery and influence witnesses. The petitioner offered several conditions for his release, including property non-alienation, passport surrender, bank account disclosure, and monthly withdrawal limits.

Key Issues

1. Whether the petitioner is entitled to be released on bail under Section 439 Cr.P.C. in connection with CR No. 205/2019, Police Station Udaimandir, District Jodhpur, for offences under Sections 420, 406, 467, 468, and 471 IPC, considering the gravity of the alleged fraud and the amount in dispute? Petitioner's Arguments: The petitioner argued that he had been in custody since October 30, 2019, for offences triable by a Magistrate. He also pointed out that he had been granted bail in another case with identical allegations. He further offered specific undertakings to ensure his cooperation and prevent any adverse impact on the investigation or recovery. Respondent's (State and GST Department) Arguments: The State and the GST Department opposed the bail application. The GST Department highlighted the significant amount of alleged fraud (Rs. 17 crores), the petitioner's role as the alleged kingpin in creating bogus firms for fraudulent GST refunds, the diversion of funds to relatives' accounts, and the ongoing investigation. They contended that releasing the petitioner could lead to witness influence and difficulties in recovering the embezzled public money.