Gaurav Vs Union of India (Allahabad High Court)
Allahabad HC grants Regular Bail to Accused in Fake ITC Case amid confessional statement and Trial Delays
The Allahabad High Court has granted regular bail to Gaurav and Chandan Sharma in a GST fake invoice case, where they were accused of orchestrating a scheme involving fake tax invoices for copper wires to avail and pass on ineligible Input Tax Credit (ITC) worth approximately Rs. 113 crores. The Directorate General of GST Intelligence (DGGI), Ghaziabad, had initiated the complaint, alleging the use of multiple fake firms for these transactions. Both applicants were arrested on February 13, 2025, and their earlier bail applications had been rejected.
The High Court observed that the prosecution’s case primarily relied on confessional statements recorded while the accused were in custody. It noted a lack of concrete evidence directly linking the applicants to the management of the alleged fake firms and acknowledged that the investigation was still ongoing. Given that the alleged offenses are triable by a Magistrate, carry a maximum punishment of five years, and the trial had not yet commenced, the Court determined that the truthfulness and evidentiary value of the confessions would be assessed during a trial that is likely to be protracted. Considering the nature of the offenses, the potential punishment, and the period of custody already served, the Court concluded that further detention of the accused would not serve a useful purpose and granted regular bail.
