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TMI Blog2024 (10) TMI 1532X X X X Extracts X X X X X X X X Extracts X X X X ..... laundering and corruption, are often viewed seriously because they affect the economic fabric of the society. The Courts may deny bail in such cases especially if the accused holds a position of influence or power. In the present case, money trail of crores, which affects the society at large scale, is involved which started from registration of fake firms by using Aadhaar and PAN Cards of the informant who had not applied for such registration. The Apex Court in the case of Manish Sisodia v. Central Bureau of Investigation, [ 2023 (11) TMI 63 - SUPREME COURT ], has discussed about the constitutional mandate which is higher law and accordingly it is the basic right of person charged of offence and not convicted be ensured and given a speedy trial, thus, where the trial is not proceeding for the reasons not attributed to the accused, the Court unless there are good reasons may well be guided by exercising power to grant bail. This would be true, the trial would take years. From the report also it is clear that the discharge application of one of the accused has been rejected and it shows that the charges are proved and once on the basis of material collected chargesheet has been su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 68, 471 120B IPC, Noida Sector-20, District Gautam Buddh Nagar. 2. As per prosecution version in FIR/Case Crime No. 203/2023, dated 04.05.2023 under Sections 420, 467, 468, 471 IPC, Police Station Noida Sector-20, District Gautam Buddh Nagar, the informant Saurabh Dwivedi is a journalist and works as an Editor of the Lallantop internet news portal and India Today Hindi Magazine. He came across two GST registrations viz. 03AUSPD7067N1Z3 and 27AUSPD7067N1ZT obtained in the State of Punjab and Maharashtra respectively w.e.f. 20.03.2023. These have been applied on informant s PAN AUSPD7067N (Exhibit 1) and bear his name, Saurabh Dwivedi as legal name of the business entity. The details of both the registrations from GST portal are enclosed as Exhibit 2 to the complaint. The registered address mentioned for the given two registrations are as under (a) 03AUSPD7067N1Z3 having registered address as 787, Ground Floor, Railway Office, ATI Road, Ludhiana, Punjab, 141008, (b) 27AUSPD7067N1ZT having registered address as 172, Sau Alakatal Uttamrao Nikalaje Path, Solapur, Solapur, Maharashtra, 413003. These have not been obtained with his consensus and he is totally unaware of the person who app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further submits that the applicant is Director in two companies, namely, M/s Albatross Parcel Express Private Limited and M/s Delco Express Private Limited having its registered office at 4B/33, 1st Floor, Tilak Nagar, New Delhi. He further submits that allegation against the applicant in the FIR is of engaging in fraudulent availment of Input Tax Credit ITC in his aforesaid companies on the strength of invoices of fake/non-existent firms which have taken under registration under the provisions of the GST Act/Rules made thereunder. It has also been alleged that there was no supply of any goods/services as mentioned in the said invoices and thus, the ITC which has passed on through such mere paper invoices, is ineligible/fraudulently availed. 7. Thus, for the offence under the GST Act, where provisions of the CGST Act are applicable, the proceedings have been drawn against the applicant in which he was arrested on 08.06.2023 and later on has been released on bail by order dated 04.08.2023 passed by Chief Metropolitan Magistrate, Patiala House Court, New Delhi. 8. He further submits that from the investigation, the name of only firm, which has been alleged to be fake/non-existent, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iracy under Section 120-B IPC as there is no direct evidence to establish conspiracy and there being no agreement or connection with fake GST firms. In support of his submissions, learned counsel for the applicants has placed reliance on a judgement of the Supreme Court in the case of Maghavendra Pratap Singh @ Pankaj Singh v. State of Chhattisgarh 2023 Livelaw (SC) 358 15. Learned counsel for the applicants submits that the applicants are innocent and have been falsely implicated in the present and in case they are released on bail, they will not misuse the liberty of bail and will cooperate in the trial by all means. Lastly, it is submitted that there is no chance of applicants fleeing away from judicial process or tampering with the witnesses. 16. Sri Manish Goel, learned Additional Advocate General assisted by Sri Amit Singh Chauhan, AGA-I, Sri Nitesh Srivastava, learned AGA and Sri Mayank Awasthi, learned Brief Holder, appearing for the State submits that nucleus of the entire issue is that there is a Press Reporter. He says that his PAN Card was misused and on the basis of his PAN Card two Firms were registered. Thus, offence under the provisions of IPC stands committed. Appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver applied and there are two different addresses which have been shown. The informant in the FIR has emphatically stated that he never applied for such registrations and there is no consensus on his part. It is also stated that similar registration has been applied in the UT of Delhi, however, same has been rejected by the GST authorities. F. Mr. Goel submits that the argument with regard to applicability of the provisions of GST Act, the informant levelled allegations of misusing his Aadhaar and PAN Cards for GST registration, thus, FIR has rightly been lodged under the relevant Sections 420, 467, 468, 471 IPC. G. With regard to arguments of learned counsel for the applicants that once chargesheet has been submitted in economic offence, the person should be released, learned AAG contends that each economic offence has distinct parameter while consideration of bail, which can be summarized in three counts: (i) Gravity of Economic Offence, (ii) Impact, if the person is released on bail or the person is detained, and (iii) Interest of the Nation. It is argued that economic offence is not possible at the hands of one person and the present case is an organized crime where crores of g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST registration using PAN Card and Aadhaar Card of the informant. During the investigation it was found that larger nexus works for having benefit of input tax credit. The offence has been committed in an organized and synchronized manner, wherein fake and bogus invoices have been created to cover the money trail and goods supply as well as money transactions are there with forged firms. Establishing the entire chain, the accused persons have been found connected with each other and in one or the other way they have been benefited by fake GST registration shown by using PAN Card and Aadhaar Card of the informant. 20. The backbone of goods and services regime is input tax credit. Under the GST regime, ITC follows supply chain not only intrastate but also interstate supply. 21. It has been established through investigation that crime has been committed by the accused persons by making fraudulent firm by using PAN Card and Aadhaar Card, Mobile Number for creating fake firms and through fake invoices, they breached supply chain of ITC and got benefit through fake gains which have been created by them. Thus, in so many words, the said case is started with registration of fake firms usin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd ensuring a transparent and accountable economic framework, as apart from being a unique identifier for individuals and entitles, it also aim at streamlining the tax recovery and payment process. Government of India has made it mandatory for PAN card holders to link the same to Aadhar Card, which is an acceptable proof of identification in India, and therefore, any potential misuse of the licence/ authorisation to issue PAN cards, would be highly detrimental not only to the interest. 24. Thus, the offence in the present case is affecting the interest of public at large. 25. I have considered the submissions advanced by learned counsel for the parties and perused the record. 26. Nowadays, money laundering has become a frequent feature and if there is evidence that the recipient attempted to conceal source of funds or participated in transferring the money in ways that suggests intentional wrong doing, thus, create circumstantial evidence as in the present case to hold them involved in the criminal activity. 27. As regards the submissions regarding no credible evidence that the applicants have conspired, planned or plotted, in any manner, and the same has been done with intention o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sk to society, the judicial process, or the investigation. Some points that should be kept in mind while granting bail are; the nature and gravity of the offence, likelihood of flight risk, risk of tampering with the evidence of witnesses, repeated offenders or habitual criminals, danger to society or the victim, possibility of committing another offence while on bail, interference with justice, specific statutory provisions like the Narcotic Drugs and Psychotropic Substances Act, 1985, Unlawful Activities (Prevention) Act (UAPA) and the Prevention of Money Laundering Act, 2002 (PMLA), lastly economic offence and white collar crimes. 34. The present case relates to economic offences. Such offence like large scale fraud, money laundering and corruption, are often viewed seriously because they affect the economic fabric of the society. The Courts may deny bail in such cases especially if the accused holds a position of influence or power. In the present case, money trail of crores, which affects the society at large scale, is involved which started from registration of fake firms by using Aadhaar and PAN Cards of the informant who had not applied for such registration. 35. The Apex C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature of accusations, the nature of evidence in support thereof, the severity of the punishment which conviction will entail, the character of the accused, circumstances which are peculiar to the accused, reasonable possibility of securing the presence of the accused at the trial, reasonable apprehension of the witnesses being tampered with, the larger interests of the public/State and other similar considerations. It has also to be kept in mind that for the purpose of granting bail, the legislature has used the words reasonable grounds for believing instead of the evidence which means the court dealing with the grant of bail can only satisfy itself as to whether there is a genuine case against the accused and that the prosecution will be able to produce prima facie evidence in support of the charge. It is not expected, at this stage, to have the evidence establishing the guilt of the accused beyond reasonable doubt. 38. Hon'ble Apex Court in the case of Directorate of Enforcement v. M. Gopal Reddy and another, 2022 SCC OnLine SC 1862 has held that in the economic offences which are having great impact on the society, the court must be slow in exercising discretion under Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accused, reasonable possibility of securing the presence of the accused at the trial, reasonable apprehension of the witnesses being tampered with, larger interest of the public or State and similar other considerations. Relevant paragraph no. 8 of the said judgement is reproduced hereunder: 8. The jurisdiction to grant bail has to be exercised on the basis of well-settled principles having regard to the circumstances of each case and not in an arbitrary manner. While granting the bail, the court has to keep in mind the nature of accusations, the nature of evidence in support thereof, the severity of the punishment which conviction will entail, the character, behaviour, means and standing of the accused, circumstances which are peculiar to the accused, reasonable possibility of securing the presence of the accused at the trial, reasonable apprehension of the witnesses being tampered with, the larger interests of the public or State and similar other considerations. It has also to be kept in mind that for the purposes of granting the bail the legislature has used the words reasonable grounds for believing instead of the evidence which means the court dealing with the grant of bail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... severity of the punishment in the event of conviction; (iv) danger of the accused absconding or fleeing, if released on bail; (v) character, behaviour, means, position and standing of the accused; (vi) likelihood of the offence being repeated; (vii) reasonable apprehension of the witnesses being tampered with; and (viii) danger, of course, of justice being thwarted by grant of bail. ... 45. The Apex Court has, in the case of P. Chidambaram v. Directorate of Enforcement (2020) 13 SCC 791 : (2020) 4 SCC (Cri) 646 , held that precedent of another case alone will not be the basis for either grant or refusal of bail though it may have bearing on principle and the consideration will have to be on caseto-case basis on facts involved therein and securing the presence of the accused to stand trial. Paragraph-23 of the said judgement reads thus: 23. Thus, from cumulative perusal of the judgments cited on either side including the one rendered by the Constitution Bench of this Court, it could be deduced that the basic jurisprudence relating to bail remains the same inasmuch as the grant of bail is the rule and refusal is the exception so as to ensure that the accused has the opportunity of s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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