The Gujarat High Court has granted regular bail to Jaydeep Mukeshbhai Virani in a case involving alleged fraudulent availment of Input Tax Credit (ITC) amounting to Rs. 21.93 crore under the Goods and Services Tax (GST) regime on the grounds that the investigation was complete and the complaint had already been filed, no useful purpose would be served by continued incarceration.
The bench of Justice Nikhil S. Kariel noted that the investigation had been completed and the complaint filed. The applicant had been in custody for nearly three months. Considering the maximum punishment prescribed and the stage of proceedings, there was no reasonable ground to continue detention.
The applicant had filed the bail application under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023, seeking release in connection with proceedings initiated by the Directorate General of GST Intelligence (DGGI), Zonal Unit, Ahmedabad. He was accused of committing an offence punishable under Section 132(1)(c) of the Central/Gujarat Goods and Services Tax Act, 2017.
According to the prosecution, the applicant, described as an active partner of M/s Patel Metal Craft, allegedly availed ITC aggregating to Rs. 21,93,65,376 on inward supplies of taxable value amounting to Rs. 1,21,86,96,528 from 38 firms. These firms had their GST registrations cancelled ab initio by the department on grounds of being non-existent or non-operational.
The department contended that the scale of the alleged fraud and the applicant’s role warranted denial of bail.
The applicant argued that the investigation had been completed and the complaint (chargesheet) had already been filed by the department. The applicant had been in custody since 28 November 2025. It was submitted that further detention would serve no purpose and that the applicant was willing to comply with any conditions imposed by the Court.
The Additional Public Prosecutor, along with counsel for the original complainant, opposed the grant of bail, emphasizing the seriousness of the allegations and the substantial amount involved. They urged the Court not to exercise discretion in favour of the applicant given the magnitude of the alleged GST fraud.
The Court also addressed the argument regarding the large monetary loss allegedly caused to the exchequer. It observed that the department remained entitled to take appropriate measures under law, apart from the criminal prosecution, but such considerations alone could not justify continued custody at this stage.
In reaching its conclusion, the Court relied upon the principles laid down by the Supreme Court in Sanjay Chandra v. Central Bureau of Investigation, which emphasize that bail is the rule and jail the exception, particularly where investigation is complete and trial is likely to take time.
The Court ordered the applicant’s release on execution of a personal bond of Rs. 1,00,000 with one solvent surety of the like amount.
The bail was made subject to several conditions, including not misusing the liberty granted; not acting in a manner prejudicial to the prosecution; surrendering passport within one week; not leaving the State of Gujarat without prior permission of the Sessions Court; furnishing residential address and informing authorities of any change; and marking presence before the concerned authority once a month for six months.
The Court clarified that the trial court would not be influenced by any prima facie observations made in the bail order and would decide the case independently on merits.
Case Details
Case Title: Jaydeep Mukeshbhai Virani Versus State Of Gujarat & Anr.
Case No.: R/Criminal Misc.Application (For Regular Bail – Before Chargesheet) No. 2073 of 2026
Date: 19/02/2026
Counsel For Appellant: Apurva N Mehta
Counsel For Respondent: Utkarsh R Sharma
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