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IN THE HIGH COURT OF ALLAHABAD
MANJU RANI CHAUHAN, J.
Kanika Dhingra – Appellant
Versus
State of Uttar Pradesh – Respondent
Criminal Misc. Bail Application Nos. 25547, 27277, 27447, 27485, 27549, 27693 of 2024
Decided On : 02-09-2024
(A) Indian Penal Code, 1860 - Sections 420, 467, 468, 471, 120-B - Bail applications - Allegations of fraudulent GST registrations using PAN and Aadhaar of informant - Investigation revealed organized crime involving multiple fake firms and transactions - No direct evidence against applicants, but substantial financial transactions linked to them - Court emphasized the gravity of economic offences and the need for stringent scrutiny in bail applications. (Paras 1-66)
(B) Economic Offences - Nature and gravity - The court highlighted that economic offences, especially those involving large-scale fraud, require careful consideration in bail applications due to their impact on society and public interest. (Paras 48-56)
Facts of the case:
The applicants are implicated in a series of FIRs concerning fraudulent GST registrations using the PAN and Aadhaar of the informant, leading to significant financial transactions and alleged organized crime.
Findings of Court:
The court found that while there was no direct evidence linking the applicants to the fraudulent activities, their financial transactions indicated complicity in the crime.
Issues: The main issues included the applicants' involvement in the fraudulent GST registrations and the implications of their financial transactions.
Ratio Decidendi: The court ruled that the nature of the accusations and the substantial financial transactions necessitated a denial of bail, emphasizing the serious nature of economic offences.
Result: The bail applications were rejected.
JUDGMENT :
MANJU RANI CHAUHAN, J.
1. This bunch of bail applications arises out of three first information reports, which are: (i) FIR/Case Crime No. 203 of 2023, dated 04.05.2023, under Sections 420, 467, 468, 471 IPC, Police Station Noida Sector-20, District Gautam Buddh Nagar (ii) FIR/Case Crime No. 248 of 2023, dated 01.06.2023, under Sections 420, 467, 468, 471 IPC, Police Station Noida Sector-20, District Gautam Buddh Nagar and (iii) FIR/Case Crime No. 255 of 2023, dated 08.06.2003, under Sections 420, 467, 468, 471 & 120B IPC, Noida Sector-20, District Gautam Buddh Nagar.
2. As per prosecution version in FIR/Case Crime No. 203/2023, dated 04.05.2023 under Sections 420, 467, 468, 471 IPC, Police Station Noida Sector-20, Gautam Buddh Nagar, the informant Saurabh Dwivedi is a journalist and works as an Editor of the Lallantop internet news portal and India Today Hindi Magazine. He came across two GST registrations viz. 03AUSPD7067N1Z3 and 27AUSPD7067N1ZT obtained in the State of Punjab and Maharashtra respectively w.e.f. 20.03.2023. These have been applied on informant’s PAN AUSPD7067N (Exhibit 1) and bear his name, Saurabh Dwivedi as legal name of the business entity. The details of both the registrations from GST portal are enclosed as Exhibit 2 to the complaint. The registered address mentioned for the given two registrations are as under: (a) 03AUSPD7067N1Z3 having registered address as 787, Ground Floor, Railway Office, ATI Road, Ludhiana, Punjab, 141008, (b) 27AUSPD7067N1ZT having registered address as 172, Sau Alakatal Uttamrao Nikalaje Path, Solapur, Solapur, Maharashtra, 413003. These have not been obtained with his consensus and he is totally unaware of the person who applied for these registrations and whose contact details are updated in these GST registrations. It is also mentioned that the two registrations are already authenticated for Aadhaar verification whereas as on date no email ID and mobile number is linked with his Aadhaar. Copy of Aadhaar Card along with screenshot showing the absence of any email ID or mobile number in Aadhaar details is enclosed as Exhibit. Further it has been learnt that similar registration has been applied in the UT of Delhi, however, the same got rejected by the GST authorities. The acknowledgement number generated after filing of GST registration application is AA070323054161Q. Hence, the FIR has been lodged.
3. As per prosecution version in FIR/Case Crime No. 248/2023, dated 01.06.2023 under Sections 420, 467, 468, 471 IPC, Police Station Noida Sector-20, Gautam Buddh Nagar, the informant - Sumit Yadav came to know about registration of fake firm, Yadav Traders, against his PAN Card No. AHFPX9874Q and the address is recorded as Ground Floor JL No. 219 Khatian No. 2275 dag no. 1835, Sahibganj Road, near Sahibganj, High School, Kharimala, Khagrabari Cooch behar West Bengal – 736101. Said Firm is got registered fallaciously against informant’s PAN Card AHFPX9874Q. It has been registered illegally by some unknown miscreants. Informant has mentioned his permanent address as K-11 Gyan Sarowar Colony, Ramghat Road, Aligarh, and present address as J-41, Senior Citizen Society, Greater Noida. Thus, the FIR has been lodged.
4. As per prosecution version in FIR/Case Crime No. 255/2023, dated 08.06.2023 under Sections 420, 467, 468, 471, 120-B IPC, Police Station Noida Sector-20, Gautam Buddh Nagar, the informant - Arvind Kumar Yadav, on being known about arrest of some persons who illegally got GST registration using PAN Card of the persons, checked on GSTSEARCH.in and found that three fake GST Numbers detailed in the FIR bearing: (1) GST No. 24ABBP43323J12N, (2) GST No. 24ABBPY43323J2ZM and (3) GST No. 06ABBPY3323J12L have been obtained by someone, whereas he or his family member never obtained any GST Number and has no concern with the firms. He has stated that his documents have been misused. Hence, the FIR has been lodged.
5. Learned counsel for the applicant while placing the fact in th
Economic offences involving fraudulent GST registrations require stringent scrutiny in bail applications due to their serious implications for public interest and financial integrity.
The principle of double jeopardy does not apply when offences under IPC and GST Act are distinct, emphasizing the serious nature of economic crimes.
The court emphasized the serious nature of economic offences, affirming that bail is the exception, especially when substantial financial loss to the state is involved.
Any offence under this Act may, either before or after institution of prosecution, be compounded by Commissioner on payment, by person accused of the offence, to Central Government or State Governmen....
The court emphasized the necessity of substantial evidence for serious charges under the GST Act and the accused's right to a fair trial.
The severity of economic offences, the need for a different approach in bail matters, and the larger interest of the public and State in such cases influenced the court's decision.
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