Tax evasion case: Allahabad High Court Grants Bail to UP Perfume Trader Caught With Rs 196 Crore In Cash

The Allahabad High Court on Thursday granted bail to perfume businessman Peeyush Jain, whose premises were raided last year by the Directorate of GST Intelligence (DGGI) team, and Rs. 196.57 crores in cash and 23 kilograms gold of gold were seized.

The bench of Justice Subhash Vidyarthi ordered Jain's release on bail keeping in view the facts that the alleged offences against Jain do not fall into the category of grave offences and he has already paid Rs. 54.09 Crores towards tax, interest and penalty although his tax liabilities are yet to be ascertained.

While allowing the bail application, court observed, “The basic jurisprudence relating to bail in economic offences remains the same inasmuch as the grant of bail is the rule and refusal is the exception so as to ensure that the accused has the opportunity of securing fair trial.”

"Even if the allegation is one of grave economic offence, it is not a rule that bail should be denied in every case since there is no such bar created in the relevant enactment passed by the legislature nor does the bail jurisprudence provide so," Court said.

Moreover, court noted that Jain had already spent more than 8 months in jail and during this period the department did not seek his custodial interrogation, which showed that his custody was not at all required.

Therefore, court allowed Jain's bail application on his furnishing a personal bond of Rs. 10 lakh and two reliable sureties each of the like amount.

Jain was arrested on December 26 last year, after being accused of evading tax. The officers of DGGI started a search on the residential and official premises of Jain at Kannauj and Kanpur on December 22 which continued till December 28. Cash amounting to Rs. 196.57 crore and 23 kg gold were seized from the premises.

Case Title: Peeyush Kumar Jain v. Union of India