Pragnesh Manharbhai Kantariya Vs State of Gujarat (Gujarat High Court)
Gujarat High Court has granted regular bail to Pragnesh Manharbhai Kantariya, accused in a ₹537 crore fake transaction case involving wrongful Input Tax Credit (ITC) claims worth ₹96.95 crore. The case, registered under the Bhartiya Nagrik Suraksha Sanhita, 2023, was filed with the State Tax Officer – EOW, Enforcement, Division-12, Gandhidham. The prosecution alleged that Kantariya engaged in financial dealings with 24 fictitious firms, claiming ITC benefits without actual exchange of goods.
During the hearing, the Additional Public Prosecutor (APP) opposed the bail, arguing that the accused actively participated in fraudulent transactions and benefited from illicit ITC claims. The prosecution highlighted that the alleged scam involved a large-scale misuse of the tax credit system, amounting to significant financial irregularities. The APP further contended that allowing bail could potentially hinder the ongoing investigation.
However, the Court noted that the investigation was complete, and a charge sheet had already been filed. It considered the legal precedents set in Sanjay Chandra v. CBI ([2012] 1 SCC 40), where the Supreme Court emphasized that bail should not be denied merely based on the gravity of the offense but should take into account the likelihood of the trial being prolonged. Given that the trial proceedings were not expected to conclude in the near future, the Court deemed it appropriate to grant bail while imposing strict conditions.
