Court Emphasizes Right to Speedy Trial and Presumption of Innocence in Economic Offences
In a significant ruling, the Punjab and Haryana High Court has granted bail to Arun Garg, accused of orchestrating a sophisticated GST evasion scheme involving fraudulent Input Tax Credit (ITC) worth over Rs. 23 crores through a network of bogus firms. The judgment underscores the principle that bail is a general rule, even in serious economic offences, to prevent prolonged incarceration and uphold the constitutional right to a speedy trial.
The petitioner, Arun Garg, had been in custody since January 28, 2025, following allegations that he masterminded a syndicate of nine taxpayer firms to issue goods-less invoices, causing substantial financial loss to the State Exchequer. Despite the gravity of the charges, the court noted that the offences are primarily based on documentary and electronic evidence, which diminishes the risk of evidence tampering if bail is granted.
Justice Aaradhna Sawhney, presiding over the case, highlighted the importance of balancing the presumption of innocence with the need for a fair trial, particularly when the trial's conclusion seems distant. The court cited several precedents, including the Supreme Court's stance in Vineet Jain v. Union of India, emphasizing that prolonged detention violates Article 21 of the Constitution, which guarantees the right to a speedy trial.
The bail conditions imposed by the court are stringent, ensuring that the petitioner does not flee or tamper with evidence. These include surrendering his passport, appearing in court as required, and refraining from similar offences.
The ruling reiterates the judiciary's commitment to upholding constitutional rights while addressing the complexities of economic offences. It sets a precedent for similar cases, emphasizing that the denial of bail should not be the default stance, even in cases involving significant economic implications.
Bottom Line:
Bail in economic offences involving GST evasion - Grant of bail cannot be denied merely due to the seriousness of the economic offence; right to bail is a general rule, while incarceration is an exception - Long custody, documentary evidence, and the right to a speedy trial are pivotal factors in deciding bail applications.
Statutory provision(s): Central Goods and Services Tax Act, 2017 Section 132, Constitution of India, 1950 Article 21
Arun Garg v. State of Haryana, (Punjab And Haryana) : Law Finder Doc Id # 2824437
