Azad Malik Vs DGGI (Delhi High Court)
The Delhi High Court has dismissed an anticipatory bail application filed by Azad Malik, the director of M/s Eco Fly E-Waste Recycling Private Limited, in connection with an ongoing investigation by the Directorate General of GST Intelligence (DGGI), Zonal Unit, Meerut. The court’s decision was based on the finding that the plea was premature, as there was no immediate or reasonable apprehension of arrest.
The petitioner, Azad Malik, sought anticipatory bail after receiving summons under Section 70 of the Central Goods & Service Tax Act, 2017 (CGST Act). His counsel argued that these summons were a form of harassment and that a reasonable apprehension of arrest existed. The petitioner’s legal team referenced a Supreme Court order in the case of Vinay Kant Ameta v. Directorate General of GST Intelligence & Anr., which had granted him interim protection against arrest in a related matter, conditioned on his cooperation with the investigation. The petitioner claimed to have already appeared before the authorities, provided a comprehensive statement, and submitted all requested documents in February 2024. Therefore, he contended that the new summons lacked justification and that there was no need for his custodial interrogation.
The respondent’s counsel, however, opposed the application, stating that a pre-requisite for granting anticipatory bail—a “reason to believe” that an arrest is imminent—had not been established. The DGGI lawyer highlighted that for an arrest to be made under the CGST Act, a competent authority like the Commissioner or Additional Director General must issue a written approval based on a reason to believe. The court was informed that no such proposal for the petitioner’s arrest had been initiated. It was also argued that the Delhi High Court might not have the territorial jurisdiction to hear the case, a point that the court ultimately chose not to address given its finding on the prematurity of the application.
