Deepak Singhal vs. The State Of Madhya Pradesh

Held

The Court allowed the bail application, finding that the applicant is a businessman who allegedly earned a wrongful gain of input tax credit. The Court noted that the offence under Section 132 of the GST Act is punishable by up to three years of imprisonment. The applicant was made an accused based on the memorandum given by the main accused, Ajay Parmar. The applicant's readiness to deposit 5% of the input tax credit of the disputed amount was a significant factor. The Court directed the applicant to deposit 5% of Rs. 87,49,147/- with the GST Authorities within 30 days of release on bail. This deposited amount is subject to the final judgment of the trial court. If the deposit is not made within the stipulated period, the trial court is empowered to issue an arrest warrant. The applicant was released on bail upon furnishing a personal bond of Rs. 1,00,000/- with two solvent sureties, and adherence to Section 437(3) of Cr.P.C.

Facts

The applicant, Deepak Singhal, a businessman, is seeking bail in connection with Crime No. 62/2023 registered at Police Station ATS Bhopal for offences under Sections 420, 467, 468, and 471 of the IPC. The prosecution alleges that the applicant obtained forged bills from one Ajay Parmar, leading to an amount of Rs. 87,49,147/- being transferred to Vaibhav Laxmi Industries. The applicant's alleged benefit was a 5% input tax credit on this amount. The applicant has been in jail since October 7, 2023. The applicant is willing to deposit 5% of the disputed amount. The State opposes the bail application, citing the white-collar nature of the crime.

Key Issues

1. Whether the applicant is entitled to be released on bail under Section 439 of Cr.P.C. given the nature of the alleged offence and the applicant's willingness to deposit a portion of the disputed amount? Petitioner's Arguments: The applicant's counsel argued that the offence under Section 132 of the GST Act is punishable by up to three years of imprisonment. They highlighted that the applicant's sole benefit from the transaction was a 5% input tax credit or tax refund. The applicant is prepared to deposit 5% of Rs. 87,49,147/-. They relied on the fact that the applicant is a businessman and the alleged wrongful gain is limited to the input tax credit. Revenue/State's Arguments: The State's counsel opposed the bail application, submitting that the applicant, along with others, committed a white-collar crime. They pointed out that Ajay Parmar created a bogus company and issued forged bills to businessmen for false input tax credit benefits. The State argued that the applicant should not be enlarged on bail due to the severity of the white-collar crime.