Vineeta Vs State of U.P (Allahabad High Court)
Prayagraj: The Allahabad High Court has granted bail to Vineeta, an accused in a case lodged under the Uttar Pradesh Gangster and Anti-Social Activities (Prevention) Act, 1986. The case stemmed from alleged involvement in a large-scale GST fraud. The court’s decision hinged significantly on the fact that the accused had already been granted bail by the Supreme Court in the underlying criminal cases forming the basis of the Gangster Act charge.
The case against Vineeta under the Gangster Act (Case Crime No. 173 of 2024 at Police Station Noida Sector-20, District Gautam Buddh Nagar) was registered based on three earlier FIRs from 2023. These predicate FIRs alleged offenses under various sections of the Indian Penal Code, including cheating, forgery, and criminal conspiracy (Sections 420, 467, 468, 471, and 120-B IPC), related to GST fraud.
According to the prosecution, the applicant was part of a syndicate involved in claiming fraudulent Input Tax Credit (ITC) amounting to over ₹26.45 billion by misusing PAN cards of individuals and generating fake GST numbers. This activity was alleged to have caused substantial financial loss to the state exchequer and was presented as a serious economic offense falling within the ambit of organized crime. The State contended that ‘organized crime’ and ‘gangster’ were distinct concepts requiring a different legal approach, citing the Full Bench decision of the Allahabad High Court in Ashok Kumar Dixit Vs. State of U.P & others (1987 SCC online Alld.). They argued that the Gangster Act was specifically designed to tackle organized crime and gangsterism, referencing the Supreme Court’s view in Dharmendra Kirthal Vs. State of U.P. and another (2013 (8) SCC 368). Reliance was also placed on Supreme Court judgments concerning the Maharashtra Control of Organized Crime Act (MCOCA) and the NDPS Act, such as State of Maharashtra Vs. Vishwanath Moranna Shetty (2012 (10) SCC 561) and Collector of Customs, New Delhi Vs. Ahmadalieva Nodira (2004 (3) SCC 549), and previous orders by Coordinate Benches of the High Court denying bail in similar Gangster Act cases.
