High Court Orders Release of Accused Stuck in Jail Despite Exceeding Maximum Sentence

The Punjab and Haryana High Court has quashed an exorbitant bail bond condition of ₹1.10 crores, imposed on an accused who had been languishing in jail for over four years, exceeding one-third of the maximum prescribed sentence for his alleged offence.

The Court observed that the accused’s detention beyond the statutory period violated fundamental rights and exposed glaring loopholes in the criminal justice system.

Justice Harpreet Singh Brar, while allowing the Petition under Section 482 CrPC, strongly criticized the authorities for failing to implement Section 479 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), which mandates the release of undertrial prisoners meeting the eligibility criteria.

The Court held that such administrative inaction and judicial indifference amounted to a “glaring miscarriage of justice.”

Background: Case of Fraudulent ITC Claims Under GST Law

The accused, Pawan Kumar, was implicated in a case under Section 132(1)(b) and (c) of the Central Goods and Services Tax (CGST) Act, 2017, along with the Punjab Goods and Services Tax (PGST) Act, 2017, and the Integrated Goods and Services Tax (IGST) Act, 2017.

He was accused of being part of a larger fraudulent scheme led by a co-accused, who allegedly created 14 fake firms in the names of family members and associates to generate fraudulent invoices. This scheme allegedly resulted in the wrongful availment of input tax credit (ITC) worth ₹17.65 crores.

Following his arrest, the prosecution failed to file a final report under Section 173 CrPC within the statutory 60-day period, making him eligible for default bail under Section 167(2) CrPC.

However, the Trial Court imposed a hefty bail bond of ₹1.10 crores with two sureties, which the accused was unable to furnish. Multiple legal attempts to modify these conditions were rejected, including by the Supreme Court.

High Court’s Sharp Criticism of Bail Conditions

After hearing arguments from Advocate Anoop Verma (for the Petitioner) and Senior Standing Counsel Sourabh Goel (for the Respondent), the Punjab and Haryana High Court ruled that the bail conditions imposed by the Trial Court were excessively stringent and violated the right to liberty under constitutional and statutory provisions.

Justice Harpreet Singh Brar emphasized:

“The facts of this case paint a distressing picture of the criminal justice system’s failure to uphold the rights of undertrial prisoners. The petitioner, despite being entitled to default bail, continued to languish in custody due to the imposition of excessively stringent conditions.”

The Court further noted that the Superintendent of Jail failed to inform the Court about the accused’s eligibility for release under Section 479 BNSS, leading to his prolonged and unlawful detention.

BNSS 2023: Retrospective Application & Legal Mandate

The Court reaffirmed that Section 479 of BNSS applies retrospectively, ensuring the release of all eligible undertrials, regardless of when their case was registered.

It strongly condemned the failure of the authorities to implement this provision, stating:

“The right to liberty cannot be rendered illusory by administrative inaction or judicial indifference.”

Court’s Verdict & Immediate Release Order

Declaring the bail conditions unreasonable and arbitrary, the Court reduced the bail amount to ₹50,000 with one surety, allowing the accused’s immediate release.

Additionally, the matter was placed before the Chief Justice for further action to ensure strict compliance with statutory safeguards.

Case Details

• Case Title: Pawan Kumar v. Inspector (Preventive), Central Goods and Services Tax
• Neutral Citation: 2025:PHHC:032260
• Bench: Justice Harpreet Singh Brar
• Petitioner’s Counsel: Advocate Anoop Verma
• Respondent’s Counsel: SSC Sourabh Goel, Advocates Samridhi Jain, Akash Khurana