Allahabad High Court Denies Bail to Chinese National Accused of Forgery and Economic Offences

The Court emphasized the risk of the accused fleeing the country and the absence of an extradition treaty with China, posing a potential threat to India's economic interests.

The Allahabad High Court has rejected the bail application of Xue Fei, also known as Koei, a Chinese national accused of multiple serious charges, including forgery, illegal stay in India, and involvement in economic offences. The decision was delivered by Justice Arun Kumar Singh Deshwal on November 19, 2025, in Criminal Misc. Bail Application No. 3577 of 2023.

Xue Fei was arrested following a series of investigations that revealed his alleged involvement in using forged documents, including a passport, Aadhaar card, and tampered visa to extend his stay in India. The charges against him include extracting and exporting chips and processors to China, activities that reportedly pose a threat to India's economic interests.

The Court highlighted the significant risk of the accused absconding, particularly in light of the absence of an extradition treaty between India and China. This concern was heightened by the fact that one of the co-accused had already fled and remains untraceable. The Court acknowledged the hostile relationship between India and China, considering it a critical factor in the decision to deny bail.

The defense argued that the applicant was neither a director nor a promoter of the companies allegedly involved in illegal activities and that there was no substantial evidence linking him directly to the offences. They also pointed out that Xue Fei had been in custody since June 2022 and that the trial was unlikely to conclude soon, given that only nine out of 76 witnesses had been examined so far.

However, the prosecution insisted on the applicant's central role in the illegal activities, emphasizing the use of forged documents and the potential economic damage caused by his actions. The prosecution also noted that Xue Fei's visa had expired in 2020, and he had no legal right to remain in the country.

In its judgment, the Court directed the trial court to expedite the trial process but concluded that releasing Xue Fei on bail would not be prudent, given the circumstances and the potential risk to India's economic security. The bail applications of several co-accused had also been rejected, reinforcing the Court's stance on the matter.

The case underscores the complexities involved in legal proceedings concerning foreign nationals accused of economic offences, especially when diplomatic relations between the countries are strained.

Bottom Line:

Bail application of a foreign national accused of forgery, illegal stay, and involvement in economic offences rejected; Court emphasized the risk of the accused fleeing the country, lack of extradition treaty between India and China, and the potential threat to India's economic interests.

Statutory provision(s):  

- Indian Penal Code (IPC) Sections: 419, 420, 467, 468, 471, 120B, 201

- Foreigners Act Sections: 14(A), 14(B), 14(C), 14AB, 14C

- Information Technology Act Section: 66D

Xue Fei@ Koei v. Nil, (Allahabad) : Law Finder Doc Id # 2814242