Chartered Accountant accused of Bogus Firms got bail: Rajasthan HC

The Rajasthan High Court in an order, released on dated 13th May 2020 grant bail to a CA, who is accused of doing fraud to get the GST refunds.

In this case, the application for bail has been filed by the petitioner under Section 439 of the Cr.P.C. in connection with CR No.205/2019, for the offences under Sections 420, 406, 467, 468 and 471 IPC.

The Petitioner is allegedly charged for doing frauds by creating bogus firms/ companies to claim transaction which was never happened. The amount has been deposited in an account belonging to one of his relatives. GST department had issued summons to both, for the investigation which is still going on.

In this case, the petitioner is accused of doing fraud and devoured around INR 17 crore and till now only 1 crore has been recovered. The respondent argued that if the petitioner got bail then he can influence the witnesses hence recovering the money will be more difficult. 

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The Bail application was allowed by the Single-Judge bench Justice Dinesh Mehta, however, it comes with conditions, which are listed below:

1. Neither the petitioner nor his wife, children, father and mother shall transfer, sell or otherwise alienate any of their moveable or immoveable properties;
2. The petitioner surrender his passport (if any) in the Trial Court within two weeks of his release;
3. The petitioner has to furnish details of all his bank accounts; and
4. The petitioner will not withdraw more than Rs.50,000/- per month from his bank accounts.

“In case of breach of any of the conditions of the undertaking(s), the State will be free to take appropriate proceedings, including applying for cancellation of the bail so granted,” the court said.