Delhi High Court Upholds Bail in ₹831 Crore GST Evasion Case
Court Finds No Perversity in Trial Court’s Bail Order
Liberty of Accused Cannot Be Curtailed by Department’s Delay
By Our Legal Reporter
New Delhi: January 14, 2026:
In a significant ruling, the Delhi High Court has refused to recall the bail granted to an accused in an alleged ₹831 crore Goods and Services Tax (GST) evasion case. The Court observed that there was no perversity in the trial court’s order and that bail cannot be cancelled simply because of the gravity of allegations.
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The case, involving alleged large-scale tax evasion through fake invoices and clandestine supply of goods, has attracted widespread attention due to its magnitude. However, the High Court emphasized that the right to liberty must be respected, and bail once granted should not be interfered with unless there are compelling reasons such as violation of bail conditions or misuse of liberty.
Background of the Case
The Directorate General of GST Intelligence (DGGI) had alleged that the accused was involved in a massive tax evasion scheme amounting to ₹831 crore, primarily through fraudulent invoicing and evasion of GST on cigarette supplies.
The trial court had granted bail to the accused, noting that:
- The investigation had been ongoing for years.
- The accused had cooperated with authorities.
- No fresh grounds were presented to justify continued custody.
The DGGI challenged this order before the Delhi High Court, arguing that the seriousness of the offence warranted cancellation of bail.
Court’s Observations
Justice Amit Mahajan of the Delhi High Court dismissed the petition, making several key observations:
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- No Perversity in Trial Court’s Order: The trial court had applied its mind and granted bail after considering relevant factors.
- Seriousness Alone Not Enough: The gravity of allegations cannot be the sole ground for cancellation of bail.
- Department’s Delay: The Court noted that despite the arrest occurring years ago, the department had failed to file a criminal complaint within a reasonable time.
- Liberty of Accused: Bail once granted should not be interfered with unless there is evidence of misuse of liberty or violation of conditions.
Similar Judicial Trends
This ruling is consistent with earlier judgments:
- In DGGI vs. Rakesh Goyal (2025), the Delhi High Court refused to recall bail in a multi-crore GST evasion case, noting that the department had not shown any new grounds.
- In Kamal Kishore Aggarwal Case (2025), the Court upheld bail in a ₹72 crore GST evasion matter, criticizing the department’s lethargic approach.
These cases highlight a judicial trend where courts prioritize individual liberty and due process over mere allegations of economic offences.
Implications of the Ruling
The ruling has important implications:
- For Tax Authorities: It sends a message that delays, and lack of proactive prosecution weaken their case for cancellation of bail.
- For Accused Persons: It reinforces that bail, once granted, is not easily revoked unless conditions are violated.
- For the Legal System: It underscores the principle that bail is the rule, jail is the exception, even in economic offences.
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Why This Matters
The case highlights the tension between economic offences and personal liberty. While GST evasion cases involve huge sums and affect public revenue, courts have consistently held that liberty cannot be curtailed indefinitely without trial.
This ruling also emphasizes the need for efficient prosecution. Departments must act swiftly to file complaints and pursue trials, rather than relying solely on prolonged custody of accused persons.
Conclusion
The Delhi High Court’s refusal to recall bail in the ₹831 crore GST evasion case is a reminder that liberty is a fundamental right and cannot be curtailed merely based on allegations. By upholding the trial court’s order, the Court reinforced the principle that bail should not be cancelled unless there is clear evidence of misuse.
For tax authorities, the ruling is a wake-up call to pursue cases diligently and avoid delays. For accused persons, it is reassurance that courts will protect their rights against arbitrary incarceration.
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