SC says can't seek bond amount equal to tax fraud as condition for bail
This story was originally published at 19:18 IST on 22 May 2026
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NEW DELHI – The Supreme Court has held that imposing bail conditions on accused to give a security bond equal to the amount involved in tax fraud is vague and onerous and cannot be given effect to. The apex court asked accused Baldeep Singh Sapra, the director of PMI Smelting Pvt. Ltd. to furnish security of assets disclosed in place of the previous condition. Subject to Sapra fulfilling this condition, he will be released on bail, said the court.
The case has its genesis from the goods and service tax department alleging that Sapra and others had fraudulently availed input tax credit of INR 302.10 million through a chain of non-existent firms issuing goods-less invoices. Last year, the Punjab and Haryana High Court said that that investigation in this case was already complete and nothing was left to be recovered from the possession of Sapra.
The high court said that the trial was not likely to be completed in near future and the detention of petitioner in judicial lock-up is not likely to serve any purpose. However, bail will be given to Sapra subject to submitting a security bond of the amount claimed by the tax department as tax dues and penalty.
Challenging the high court's order, Sapra moved the apex court. Sapra said that the condition was onerous and vague as the tax and penalty amount has not yet been determined. Sapra's mother disclosed the entire assets of the family before the apex court in the case for giving security. End
Reported by Surya Tripathi
Edited by Akul Nishant Akhoury
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