The Punjab & Haryana High Court has granted bail to persons, Sovit Bansal, Karan Bansal and Sanjeev Kumar Bansal accused of GST Evasion worth Rs.116.53 crores.
The bench of Justice Jasjit Singh Bedi has observed that the veracity of the prosecution case against the petitioners shall be adjudicated upon during the course of the Trial. They are stated to be in custody since 02.05.2025 but none of the 25 prosecution witnesses has been examined so far. Therefore, the Trial of the present case is not likely to be concluded anytime soon. In this situation, the further incarceration of the petitioners is not required.
The secret information was received that Sanjeev Kumar alongwith his two sons-Karan Bansal and Sovit Bansal were involved in Clandestine sale of goods through their six firms, namely, M/s Shree Salasar Steel Tubes & Co., M/s Shree Salasar Balaji Steel Tubes, M/s K.T.B. Alloys, M/s A.K.M. Alloys, M/s Ram Ji Concast and M/s Bharat Steel Industries. Based on the secret information, the respondent-agency conducted a search under Section 67(2) of CGST Act, 2017 at the business premises of the firms alongwith the residential premises of their partners and employees on 22.02.2025.
On the basis of various searches conducted on the date, the agency concluded that the petitioners were the key persons for the Clandestine Sale of goods. It was allegedly found that there were various sale of goods without actual issuance of invoices involving GST amount of Rs.69.99 Crores and further there were fraudulent availment and utilization of ITC of Rs.46.53 Crores without physical receipt of goods from non-existence firm.
Therefore, the agency alleged that there was total GST evasion of Rs.116.53 Crores. Pursuant thereto, on conclusion of the investigation, a complaint has been filed before the Court of the Chief Judicial Magistrate, Ludhiana on 27.06.2025 for commission of the offences under Sections 132(1)(a) and (c) of CGST Act, 2017.
The petitioners contend that the allegations levelled in the complaint are baseless. The petitioners were taken into custody illegally but their arrest has been shown later. No grounds of arrest were served upon them. The petitioners have been arrested without following the mandatory provisions of Sections 73 and 74 of the CGST Act, 2017. The complaint already stands filed. As the petitioners are in custody since 02.05.2025 but none of the 25 prosecution witness has been examined so far, the Trial of the present case is not likely to be concluded anytime soon and therefore, they are entitled to the concession of bail, particularly, when the maximum sentence on conviction would be for a period of 05 years.
The court granted the bail subject to their furnishing bail bonds and surety bonds each to the satisfaction of learned CJM/Duty Magistrate, concerned.
Case Details
Case Title: Sovit Bansal V/s Directorate General of GST
Case No.: CRM-M-38861-2025 (O & M)
Date: 29/09/2025
Counsel For Petitioner: Bipan Ghai, Sr. Advocate
Counsel For Respondent: Sourabh Goel, Sr. Standing Counsel, DGGI
