2020 (5) TMI 240 - SCH - GST

Release on bail - fake firms - evasion of GST input taxes - Petitioner spent one year in Jail - the maximum punishment to be imposed on the petitioner, if convicted, is five years. - HELD THAT - It is not in dispute that the maximum punishment to be imposed on the petitioner, if convicted, is five years. It is also not in dispute that the petitioner has already undergone one year and eight months imprisonment. It is brought to our notice that some of the accused are released on bail. The State shall make endeavour to complete the investigation within three months from today - In case the investigation is not completed within three months from this day, the petitioner shall be released on bail by the Trial Court by imposing appropriate terms and conditions - If the investigation is completed, the report shall be filed before the concerned court. In case, the investigation is completed and the report is filed within three months from today, it is open for the petitioner to move the trial court for bail, if he so chooses. If such an application is filed, the same shall be considered on its own merits by the trial Court. SLP disposed off.

Summary

Issues: Allegation of creating fake firms and committing fraud, pending investigation, duration of imprisonment, bail conditions, completion of investigation

In the judgment delivered by the Supreme Court of India, the petitioner was accused of creating 555 fake firms and committing a fraud amounting to ?74,00,00,000. The investigation, as highlighted by Mr. K.M. Natraj, the learned additional solicitor general, was still ongoing with the discovery of more fake firms linked to the petitioner. It was acknowledged that the maximum punishment upon conviction for the petitioner was five years, and he had already served one year and eight months in imprisonment. The court noted that some co-accused had been granted bail.

Considering the circumstances, the court ordered the State to strive to conclude the investigation within three months. If the investigation was not completed within this timeframe, the petitioner was to be granted bail by the Trial Court under suitable terms and conditions. In the event of the investigation's completion within the stipulated three months, the report was to be submitted to the concerned court. Subsequently, the petitioner could apply for bail at the trial court's discretion. The judgment concluded by disposing of the special leave petition accordingly.

The judgment addressed the critical issues of the ongoing investigation, the petitioner's imprisonment duration, and the potential bail conditions based on the investigation's completion within a specified period. It emphasized the need for timely investigation completion and provided a structured approach for the petitioner's potential release on bail, ensuring a fair and just process in line with legal principles.