In a notable decision, the Supreme Court has granted bail to an individual accused of orchestrating an elaborate tax fraud involving the creation of 294 fictitious firms and evading taxes amounting to ₹1,032 crores. The accused, Ashutosh Garg, was apprehended in November 2023 under the Goods and Services Tax Act by the Directorate General of Goods and Services Tax Intelligence.
A bench comprising CJI DY Chandrachud, Justices JB Pardiwala, and Manoj Misra, concluded that the maximum penalty for the offence being five years imprisonment, along with the time already served, warranted Garg’s release from custody. The court noted, “We do not find it appropriate to keep the petitioner languishing in jail any further. The petitioner shall accordingly be released on bail.”
Representing Garg, Senior Advocate Talwant Singh argued for his client’s release, while Additional Solicitor General Vikramjit Banerjee represented the Union of India.
Previously, the Rajasthan High Court had denied Garg’s bail request, emphasizing the gravity of economic offences that involve deep-rooted conspiracies and substantial losses to the public treasury. The High Court, in its March 6 order, highlighted that such acts obstruct national development and thus should be approached differently regarding bail considerations.
Despite Garg’s argument that his arrest was based on an inadmissible confessional statement and that the crime carried a maximum of only five years imprisonment, the High Court maintained its stance, noting the rejection of a co-accused’s bail plea.
This case subsequently reached the apex court, leading to the recent decision to grant bail to Garg.
