In MCRCA No. 243 of 2023- CHHA HC- Chhattisgarh High Court grants anticipatory bail to former Assistant Director (Horticulture) and others in GST irregularity case
Justice Deepak Kumar Tiwari [02-05-2023]

Read Order: Nidhan Singh Kushwaha and Ors v. State of Chhattisgarh

Chahat Varma

New Delhi, May 26, 2023: The High Court of Chhattisgarh has granted anticipatory bail to Nidhan Singh Kuchwaha, former Assistant Director (Horticulture), Jignesh Patel, Proprietor of M/s. Kishan Agrotech and Mr. Satish Jindal, Proprietor of M/s. Jai Gurudev, in a case where they were accused of irregularity in not depositing GST in the accounts of the Central and State Governments.

In the present case, applications were filed under section 438 of the Code of Criminal Procedure seeking anticipatory bail. The applicants were apprehending arrest for offenses under sections 409, 420, 120B, and 34 of the Indian Penal Code.

The prosecution had alleged that the applicants were involved in an irregular withdrawal of subsidy funds for the construction of Shed Net House/Green House and Pack House/Poly House. On enquiry, it was found that for a single farmer, only one net house was constructed and thereby, the applicants in a fraudulent manner, had committed irregularity by not depositing GST in the account(s) of the Central and State Governments.

The applicants argued that the applicants did not cause any financial loss to the government or its beneficiaries. They contended that the subsidy amount was given only for the construction of one shed, and this amount was directly deposited into the beneficiaries' accounts and thereafter, the beneficiaries placed the order to the concerned firms.

The bench noted that during the proceedings, on being asked, the learned counsel for the objector failed to demonstrate as to how much loss had been caused to the State from the amount released in the subsidy. The counsel also failed to submit any correspondent sent to the concerned GST Department for necessary recovery against the defaulter. The counsel for the State further mentioned that no information regarding the matter was available in the case diary, and the Departmental Enquiry Report did not include any such information gathered from the GST authorities.

Taking into consideration the submissions, nature of accusation and the quality of evidence, the court allowed the bail applications.