Court Denies Quashing FIR and Charges Against Nishant Sahu, Cites Prima Facie Evidence of Cheating and Forgery
In a significant judgment, the Chhattisgarh High Court has dismissed a petition filed by Nishant Sahu seeking to quash an FIR, charge-sheet, and subsequent criminal proceedings linked to allegations of tax evasion and issuance of bogus sales invoices. The Division Bench, comprising Chief Justice Ramesh Sinha and Justice Ravindra Kumar Agrawal, delivered the decision on June 16, 2026, emphasizing that the allegations against Sahu disclose a prima facie case under the Indian Penal Code (IPC) for cheating and forgery.
The case originates from FIR No. 361/2014, lodged at Police Station Civil Lines, District Bilaspur, alleging that Sahu, as the proprietor of M/s Sai Nath Enterprises, engaged in fraudulent activities resulting in significant revenue loss to the state. The prosecution claims that Sahu's firm generated fictitious sales invoices, enabling dealers to claim undue input tax credit, thus evading taxes amounting to Rs. 17.81 lakh.
Despite Sahu's defense arguing that the matter pertains to fiscal discrepancies under the Chhattisgarh Value Added Tax Act, 2005, and should not invoke IPC provisions, the court held that the criminal proceedings are justified. The court noted that fiscal remedies under the VAT Act do not preclude prosecution under the IPC when allegations of cognizable offenses are present.
The court also addressed the issue of delay in the investigation, recognizing the prosecution's explanation that Sahu had absconded, complicating the probe. The judgment underscores the principle that allegations in an FIR that disclose cognizable offenses necessitate investigation and trial rather than premature quashing.
The court's refusal to quash the proceedings aligns with the Supreme Court's guidelines on exercising caution in dismissing criminal cases at the preliminary stage. The judgment highlights that disputed factual questions and the sufficiency of evidence should be addressed during trial, not in pre-trial petitions.
This ruling reiterates the judiciary's stance on maintaining the integrity of criminal investigations, especially in cases with fiscal and fraudulent implications. The trial will proceed in the lower court, where evidence will be scrutinized to determine the veracity of the charges against Sahu.
Bottom line:-
Quashing of FIR, charge-sheet, and criminal proceedings cannot be entertained if allegations disclose a prima facie case of cognizable offences, even in disputes with fiscal implications under a special statute like the Chhattisgarh Value Added Tax Act, 2005.
Statutory provision(s):
Bharatiya Nagarik Suraksha Sanhita, 2023 Section 528, Indian Penal Code, 1860 Sections 420, 467, and 34
Nishant Sahu v. State of Chhattisgarh, (Chhattisgarh)(DB) : Law Finder Doc id # 2925995
