Despite Serious Allegations, Court Cites Delay in Investigation and Absence of Misconduct to Deny Cancellation of Bail
In a notable decision dated December 17, 2025, the Delhi High Court, presided over by Justice Amit Mahajan, dismissed a petition challenging the bail granted to Kamal Kishore Aggarwal, accused in a significant GST evasion case involving Rs. 72 crores. The Directorate General of GST Intelligence had contested the bail granted by the Chief Metropolitan Magistrate (CMM), Patiala House Courts, New Delhi, arguing that the magnitude of the economic offence warranted a different approach.
The case involves allegations that Aggarwal was engaged in the clandestine supply of cigarettes, evading GST to a substantial amount. Despite these serious allegations, the CMM had granted bail on the grounds that Aggarwal had deposited Rs. 1.35 crores towards GST and was suffering from a medical condition. The court also noted the delay in filing the complaint, exacerbated by the COVID-19 pandemic, and the absence of any misuse of the bail by the respondent.
During the proceedings, the prosecution argued that the initial bail was granted prematurely, given the gravity of the offence and the lack of completion in the investigation. However, the High Court observed that the investigation had been lackadaisical, with no complaint filed even five years post-investigation initiation. The court emphasized that the prosecution's lethargic approach did not justify interference with the respondent's liberty.
The judgment referenced significant precedents, highlighting that economic offences require a different judicial approach due to their potential impact on the economy. However, Justice Mahajan underlined that the accused's prolonged incarceration without progress in investigation would be unjust.
The court concluded that there was no substantial basis to revoke the bail, considering the department's failure to expedite the investigation or prove any misconduct by the accused since being granted bail.
Bottom Line:
Bail in economic offences involving GST evasion - Bail granted considering respondent's deposit towards GST, medical condition, and delay in investigation. However, court emphasized the serious nature of economic offences and the need for a different approach while granting bail in such cases.
Statutory provision(s): Section 482 of the Criminal Procedure Code, 1973; Section 132 of the Central Goods and Services Act, 2017.
