Court Emphasizes "Bail is the Rule, Jail is the Exception" in Granting Bail to Accused Involved in Alleged GST Fraud
In a significant ruling, the Allahabad High Court has granted bail to Shakib Qureshi, an accused in a case involving fraudulent GST claims and creation of fake firms. The decision was delivered by Justice Vikram D. Chauhan, highlighting the principle that "bail is the rule, and jail is the exception," a cornerstone of criminal jurisprudence in India.
The prosecution had charged Qureshi under Sections 132(1)(b), 132(1)(c), 132(1)(e), and 132(1)(i) of the Central Goods and Services Tax Act, 2017, for allegedly orchestrating a scheme to create fake firms and issue GST invoices without actual supply of goods or services. This led to fraudulent claims of Input Tax Credit (ITC), resulting in a substantial loss of revenue. The accused has been in custody since November 19, 2025.
The court considered several factors in its decision to grant bail. These included the completion of the investigation, the filing of the complaint, and the applicant's lack of prior criminal history. The court also noted that pre-conviction detention should not be punitive and that the evidence against Qureshi was primarily documentary. Given that the maximum punishment under the relevant CGST provisions is five years, and the trial is expected to be protracted, the court found it reasonable to release the applicant on bail.
Justice Chauhan referred to multiple precedents from the Supreme Court of India, emphasizing the presumption of innocence and the right to personal liberty under Article 21 of the Constitution. The court underscored the importance of not using detention as a punitive measure before conviction.
The bail was granted with strict conditions to ensure Qureshi's presence at trial and to prevent any tampering with evidence. These conditions include prohibitions on leaving the country without court permission, tampering with evidence, or intimidating witnesses.
This judgment aligns with similar decisions by the Supreme Court and other High Courts, which have underscored the need for timely justice and the protection of personal liberty. The ruling is expected to resonate in legal circles, reinforcing the principle that bail should not be denied unless there are compelling reasons to do so.
Bottom line:-
Bail granted to the accused under Sections 132(1)(b), 132(1)(c), 132(1)(e), and 132(1)(i) of the CGST Act, 2017, considering completion of investigation, lack of prior criminal history, and the principle that "bail is the rule and jail is the exception."
Statutory provision(s): Sections 132(1)(b), 132(1)(c), 132(1)(e), 132(1)(i) of the Central Goods and Services Tax Act, 2017
Shakib Qureshi v. Anti Evasion CGST, (Allahabad) : Law Finder Doc id # 2921899
