Chartered Accountant Granted Bail in Alleged GST Fraud Case

The Karkardooma Court has granted bail to Chartered Accountant Atul Gupta in a GST fraud case registered in 2020, observing that no useful purpose would be served by keeping him in judicial custody when the investigation has been ongoing for several years and further custodial interrogation was not considered necessary.

Chief Judicial Magistrate Mohit Sharma passed the order on 29 May 2026 in relation to Gupta’s arrest on 12 May 2026. The Court noted that despite the investigation continuing since 2020, the Investigating Officer had not indicated any requirement for further custodial interrogation of the accused.

“Considering the fact that the investigation in the present case has been continuing from the year 2020, further custodial interrogation of the accused is not indicated by the IO as well as the custody period of the accused, this court is of the view that no purpose would be served by keeping the accused in Judicial custody.”

On behalf of the accused, it was submitted that Gupta, a practising Chartered Accountant since 2015, had cooperated with the investigation throughout the proceedings. The defence contended that no recovery had been effected from him, he was not the beneficiary of any of the accounts under scrutiny, and the allegations pertained to transactions dating back to 2015.

The prosecution opposed the bail application, citing the gravity of the alleged GST fraud. It was argued that the accused had not fully cooperated during the investigation and had furnished misleading responses during questioning. The prosecution further submitted that the investigation was at a crucial stage, with financial analysis, recovery of documents, digital examination, and identification of beneficiary entities and individuals still pending.

Concerns were also raised that the accused, if released, could potentially influence persons associated with his chartered accountancy firm and related entities or interfere with the collection of evidence.

However, the Court observed that mere dissatisfaction of the Investigating Officer with the replies furnished by the accused could not, by itself, justify continued judicial custody.

“Any dissatisfaction of the Investigating Officer regarding the replies given by the accused cannot be a ground to continue his judicial custody.”

Taking into account the duration of the investigation, the period already spent in custody, and the absence of any requirement for further custodial interrogation, the Court granted bail to Atul Gupta upon furnishing a bail bond of Rs 25,000 along with one surety of the like amount.