Gulam Fareed Vs State of Rajasthan (Supreme Court of India)
The appeals before the Supreme Court of India arose from a common judgment dated 7 August 2025 of the Rajasthan High Court, Jaipur Bench, which had rejected bail applications filed by the appellants in connection with offences under Section 132 of the Central Goods and Services Tax Act, 2017. The appellants were arrested on 19 February 2025 pursuant to investigations initiated by the Directorate General of GST Intelligence alleging large-scale GST evasion in the iron scrap trade.
Before the High Court, the prosecution alleged that the appellants were part of a systematic network engaged in clandestine supply of goods without invoices, bills, or e-way bills, resulting in substantial loss to the exchequer. The Department relied on statements of accused persons, electronic evidence, and documentary material, contending that the offences were serious economic crimes involving high amounts of tax evasion and therefore non-bailable. The High Court, after considering the material, concluded that the appellants were involved in an organised tax evasion network and that the seriousness of the offence and the evidence collected disentitled them to bail.
The appellants approached the Supreme Court challenging the High Court’s refusal of bail. It was not disputed before the Supreme Court that a police report (charge sheet) under Section 193 of the Bharatiya Nyaya Suraksha Sanhita, 2023 had already been filed on 17 April 2025. Although the prosecution indicated that further investigation was continuing and a supplementary charge sheet might be filed, the principal investigation had culminated in the filing of the charge sheet.
