Ajay Singh Vs Union of India (Chhattisgarh High Court)
The Chhattisgarh High Court considered the First Bail Application of Ajay Singh, who was arrested and charged under Sections 16, 132(1)(c), and 132(1)(f) of the Central Goods and Services Tax (CGST) Act, 2017, related to alleged Input Tax Credit (ITC) fraud. According to the prosecution, the applicant had utilized counterfeit invoices to fraudulently avail ITC amounting to ₹16,83,65,155, causing a substantial loss to the government treasury. Counsel for the applicant contended that Singh was falsely implicated, arguing that detention was unwarranted and violated his constitutional rights, especially since the exact quantum of tax—which dictates the punishment under the GST Act—had not yet been determined through proper assessment. Furthermore, the defense pointed out the absence of evidence in the complaint that would imply the applicant’s active participation in the fraud and highlighted that the applicant had been in custody since April 7, 2025, with the complaint already filed before the competent court.
After hearing arguments from both sides and reviewing the case record, the Chhattisgarh High Court decided to grant regular bail to Ajay Singh. The Court acknowledged the gravity and nature of the allegations but placed significant weight on the fact that the applicant had been incarcerated for over a year and that the complaint had already been filed, indicating that the initial stage of investigation was complete. The Court’s primary reason for granting bail was the likelihood that the conclusion of the trial would take a considerable amount of time. Therefore, without commenting on the merits of the case, the Court allowed the bail application. Ajay Singh was ordered to be released upon furnishing a personal bond of ₹1,00,000 with one solvent surety to the satisfaction of the concerned court. The bail order remains in force until the final disposal of the case.
