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Punjab and Haryana High Court Dismisses Bail Plea of Man Accused of GST Fraud

Punjab and Haryana High Court today dismissed interim bail application filed by accused who allegedly caused loss to the State-Exchequer to the tune of Rs. 20 Crore appx by evasion of payment of GST. 

Court observed that Supreme Court, in order dated 23.3.2020 directed all States/Union Territories to consider as to which of the prisoners ‘may’ be released on interim bail or parole during the pandemic so as to decongest the jails and to prevent outbreak of COVID-19 virus in prisons. 

Pursuant to said directions a Committee was constituted in State of Punjab, headed by Chairman, Punjab State Legal Services Authority and certain guidelines were laid for release of certain categories of prisoners.

Js. Gurvinder Singh Gill observed that  primary object of the directions issued by Supreme Court was to protect the health of the prisoners and restrict transmission of COVID-19 by decongestion of prisons. The move cannot be treated as a windfall for all the prisoners even when there is no imminent threat or apprehension within the jail premises as on date as regards spread of pandemic. Court also draws strength from the fact that State of Bihar has chosen not to release any of the prisoners as the jails are not congested and there was no reported case of corona virus in the jails and the said fact was duly noticed by Supreme Court in its order.

It was made clear that States/ UT’s were not directed  to compulsorily release the prisoners from their prisons. Purpose of order was to ensure States/Union Territories to assess the situation in their prisons having regard to the outbreak of the present pandemic in the country.

In present case, allegations against petitioners are in respect of section 132 of GST Act 2017 which is punishable for a maximum sentence of 5 years and  as per  policy cases of under trials charged with offences punishable for a sentence of up to 7 years could be considered. Offence assumes gravity in view of the amount which is `20 crores approximately and is a factor to be borne in mind while considering the release . 

Allegations are that petitioners forged bills and other documents in furtherance of their designs to cause loss to State Exchequer which prima-facie would also attract an offence punishable under section 467 IPC which is punishable with imprisonment for life.

Since, no COVID-19 case exists in Nabha jail and its decongested, therefore in view of gravity of offence and the amount involved  Court does not deem appropriate to grant interim bail.

Jail Superintendent would ensure all cautions and safeguards are followed whenever new inmate is admitted and would get him medically examined and keep him/her segregated from other inmates for 14 days at least to rule out any chance of spread of epidemic within jail premises. case such fresh prisoner happens to be infected with COVID-19, although he may not initially have shown any such symptoms.

India Legal Bureau

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