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Allahabad HC Grants Bail to CA Despite GST Fraud Allegation of ₹40 Crores

Case Law Details

TaxGuru Citation
2025 taxguru.in 13503
Case Name
Lokesh @ Lokesh Hasija Vs Union of India Through Director General (Allahabad High Court)
Date of Judgement/Order
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Lokesh @ Lokesh Hasija Vs Union of India Through Director General (Allahabad High Court)

In the matter of Lokesh @ Lokesh Hasija vs Union of India through Director General, Allahabad High Court considered an application for bail filed by the applicant in Case Crime No. DGGI/INV(GST) 1498/2025, registered under Sections 132(1)(b) and 132(1)(i) of the Central Goods and Services Tax Act, 2017. The case was registered with the DGGI, Kanpur Nagar, concerning alleged GST evasion amounting to over ₹40 crores. The applicant, a chartered accountant, contended that the allegations against him were entirely false and highlighted that the maximum punishment for the alleged offence is five years imprisonment, which is triable by a Magistrate. The applicant had been in custody since 2 October 2025, and his counsel argued that the prosecution was based entirely on documentary evidence, indicating that the trial would take a considerable period to conclude. Additionally, the applicant had no prior criminal record.

The Director General of DGGI opposed the bail application but did not dispute the factual assertions made by the applicant regarding his professional background, absence of criminal antecedents, and the documentary nature of the evidence. The court noted that the alleged GST fraud was substantial, yet the statutory maximum sentence for the offence remained five years. Given the time already spent in custody and the procedural aspects of trial for offences triable by a Magistrate, the court observed that the applicant had been incarcerated for nearly two months. The court further noted that, post-investigation, a complaint had been filed, and the entire case relied on documentary evidence, which generally extends the duration of trial proceedings.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 20,886

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