[Ashutosh Garg Vs UOI] Rs 1,032 Crore Tax Fraud Case: SC Grants Bail To The Accused

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“Considering that the maximum penalty for this offense is five years of imprisonment and taking into account the time already spent in custody, we believe it is not suitable to keep the petitioner in jail any longer. Therefore, the petitioner will be released on bail,” the Court stated.

[Ashutosh Garg Vs UOI] Rs 1,032 Crore Tax Fraud Case: SC Grants Bail to the Accused

NEW DELHI: Recently, The Supreme Court granted bail to Ashutosh Garg, accused of creating 294 fake firms and evading Rs 1,032 crores in taxes through fake invoices.

The bench, consisting of CJI DY Chandrachud, Justices JB Pardiwala, and Manoj Misra, decided to release Garg, who was arrested under the Goods and Services Tax Act in November 2023 by the Directorate General of Goods and Services Tax Intelligence.

The Court stated that given the maximum punishment is five years and considering the custody period already served, it was inappropriate to keep him in jail.

“Considering that the maximum penalty for this offense is five years of imprisonment and taking into account the time already spent in custody, we believe it is not suitable to keep the petitioner in jail any longer. Therefore, the petitioner will be released on bail,”

the Court stated.

Senior Advocate Talwant Singh represented Garg, while Additional Solicitor General Vikramjit Banerjee represented the Union of India. The Rajasthan High Court had earlier denied bail to Garg, who argued that his arrest was based on an inadmissible confessional statement.

The High Court had rejected his bail plea on March 6, noting a co-accused’s bail was also denied in February.

Justice Anoop Kumar Dhand highlighted the severe economic impact of Garg’s actions, emphasizing the need for a different approach in granting bail for such economic offenses.

“A common man in this country pays various taxes, including CGST and SGST, to both the Central and State Governments for the nation’s and state’s development. However, individuals like the petitioner hinder this development by creating fake firms and causing a significant loss of Rs 10,32,91,88,876 to the public exchequer. Such economic offenses by individuals like the petitioner require a different approach when considering bail,”

Justice Anoop Kumar Dhand stated in the order.

This led to Garg’s appeal to the Supreme Court.

Case Title: Ashutosh Garg vs Union of India