Rajasthan High Court Refuses Bail To Director Of A Company Allegedly Involved In GST Evasion Worth Rs.869 Crores

Counsel for Sohan Singh Rao/petitioner submitted that the petitioner was falsely implicated in the case of GST evasion. The petitioner is a director of M/s Miraj Products Private Limited. He has been behind bars since January 13, 2022. In the first complaint, there was not a single word regarding the alleged offence against the petitioner. In the supplementary complaint, only one allegation of the offence is based on the statement of the petitioner. The petitioner has retracted the statement.

Counsel for Sohan Singh Rao/petitioner submitted that the respondent department had not seized any unaccounted bills regarding packaging of tobacco on the premises. The petitioner had deposited the amount of Rs. 100 crores and was also going to deposit another amount of Rs. 100 crores. The offence against the petitioner is compoundable.

Counsel for the state, on the other hand, claimed that the petitioner was a director at M/s Miraj Products Private Limited and was responsible for the tax evasion.According to the investigation, a total of Rs. 869 crores in tax evasion was committed by establishing a fictitious firm for tax evasion.

The court noted that the Supreme Court in its various decisions held that an economic offender should not be dealt with as a general offender because economic offenders run a parallel economy and they are a serious threat to the national economy.

The court relied on the decision of Vinaykant Ameta Vs. Union of India in which the bail of Vinaykant Ameta was dismissed by the High Court and the Apex Court had granted the bail of Vinaykant Ameta on depositing Rs. 200 crores.

Case Title: Sohan Singh Rao Versus Union Of India

Citation: 2022 LiveLaw (Raj) 112

Case No.: S.B. Criminal Miscellaneous Bail Application No. 2555/2022

Dated: 24/03/2022

Counsel For Petitioner: Senior Advocate V. R. Bajwa

Counsel For Respondent: Senior Standing Counsel for DGGI Kinshuk Jain

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