Dhiraj Nath Gupta Vs Union of India (Allahabad High Court)
The Allahabad High Court granted bail to a businessman in a case involving alleged GST fraud amounting to Rs. 32 crores. The bail application was filed under Sections 132(1)(b), 132(1)(c), and 132(1)(i) of the CGST Act, 2017, during the pendency of the trial in Case No. 3019 of 2024, registered at DGGI Regional Unit, Ghaziabad. Counsel for the applicant contended that the allegations of forming multiple shell companies to fraudulently claim input tax credit were false. The counsel further noted that all alleged offences are triable by a Magistrate with a maximum punishment of five years, and that the investigation was already completed with a complaint filed. It was also emphasized that the case is primarily based on documentary evidence, and the trial would take considerable time. The applicant had been in custody since 22 June 2025 and had no prior criminal history.
The DGGI opposed bail, arguing that the applicant was a dishonest businessman involved in large-scale tax fraud. However, the Court observed that the offences are triable by a Magistrate and the maximum punishment does not exceed five years. With the investigation completed and the complaint filed, continued detention was not deemed necessary. The Court noted that as the prosecution relies on documentary evidence, the trial process would be time-consuming.
