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SC directs release of GST accused on bail, flags prolonged custody and stalled trial

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New Delhi | January 12, 2026 5:49:26 PM IST
The Supreme Court of India on Monday directed the release of Amit Mehra on bail, emphasising that an undertrial cannot be kept behind bars indefinitely.

The court noted that he has already been in judicial custody for more than eight months and that the trial has not yet begun.

A Bench of Justice J.B. Pardiwala and Justice Alok Aradhe passed the directions while hearing Mehra's special leave petition challenging the denial of regular bail by the Punjab and Haryana High Court in a case registered by the Directorate General of GST Intelligence (DGGI).

The prosecution relates to alleged offences under Section 132(1)(b) of the Central Goods and Services Tax Act, Section 132(1)(i) of the GST Act and Section 20(xv) of the IGST Act.

While acknowledging the gravity of the alleged offence, the Court underscored that the petitioner has remained an undertrial prisoner for over eight months, with charges yet to be framed. The Bench observed that even if the trial commenced shortly, it was unlikely to conclude within the next year.

It further noted that the offences are triable by a magistrate and carry a maximum punishment of up to five years, making continued incarceration at this stage unwarranted.

"In such circumstances, we are persuaded to exercise our discretion in favour of the petitioner," the Bench said, ordering that Mehra be released on bail on such terms and conditions as may be imposed by the trial court.

The Court also clarified that if the GST department seeks any specific condition to safeguard its interests, it may move an application before the trial court, which shall consider the request in accordance with the law.

Senior advocate PB Suresh appeared for the petitioner, assisted by advocates Saurabh Kapoor, Mayank Jain, Madhur Jain, Gurwinder Singh, Kartik Yadav, Muskaan Gupta, Muskan Chauhan, Tanya Kumar, Shivani Kapoor, and Nikilesh Ramachandran, AOR. The Union of India was represented by Additional Solicitor General Raja Thakre, along with advocates Gurmeet Singh Makker, AOR, Rohit Khare, Bhuvan Mishra, Udit Dediya and Mayank Pandey.

With these directions, the Supreme Court disposed of the special leave petition and all pending applications, permitting the dasti of the order. (ANI)

 
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