In a significant legal development, the Supreme Court of India granted bail to Ashutosh Garg on Friday, July 26, 2024. Garg faces allegations of orchestrating a ₹1,032 crore fraud involving fake GST input tax credits through nearly 294 sham firms. The charges against him fall under multiple sections of the Central Goods and Services Tax Act, 2017, including 132(1)(b), (c), (f), (j), and (l).
The bench, headed by Chief Justice of India DY Chandrachud and Justices JB Pardiwala and Manoj Misra, noted that Garg had been in custody for almost nine months since his arrest on November 2, 2023. Given that the maximum penalty for the charged offences is five years of imprisonment, the Court decided it was unjust to prolong Garg’s detention.
“Considering that the offence carries a maximum punishment of five years of imprisonment and the period of custody already undergone, we do not consider it appropriate to keep the petitioner languishing in jail any further. The petitioner shall accordingly be released on bail, subject to such terms and conditions as may be imposed by the Trial Court,” the bench stated.
Senior Advocate Talwant Singh represented Garg, while Additional Solicitor General Vikramjit Banerjee appeared for the Union.
Earlier, on March 8, 2024, the Rajasthan High Court had denied bail to Garg. Justice Anoop Kumar Dhand emphasised the severe impact of economic offences on the public exchequer, labelling such ‘white collar crimes’ as serious threats to the nation’s economy.
