Could not pay Rs 1.10 crore for bail: Spent four years in jail in tax fraud case.. now the High Court has raised questions
The Punjab and Haryana High Court has ordered the release of an accused in a tax fraud case, rejecting the unreasonable bail condition of Rs 1.10 crore. The accused had spent four years in jail after being unable to meet the bail condition. The court also criticized the inaction of legal authorities and the failure of the criminal justice system in this case.

In 2021, the accused was arrested from Ludhiana in a tax fraud case. The chargesheet was not filed within 60 days, after which the accused sought default bail. The accused spent four years in jail after being unable to pay Rs 1.10 crore for bail.
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Court's Decision on Default Bail
The Punjab and Haryana High Court has rejected the condition of Rs 1.10 crore for granting default bail to the accused in a case related to tax fraud, terming it unreasonable. The court said that this case reflects the failure of the criminal justice system. The bench mentioned that the accused had been in jail for the last 4 years, 1 month, and 20 days, while the maximum punishment for the crime is 5 years.
The court ordered the release of the accused on a bail amount of Rs 50,000 and stated that, in this case, not only was the accused entitled to default bail, but he should also have been released under Section 479 of the BNSS. The court directed to place the matter before the Chief Justice so that appropriate action could be taken.
The Arrest and Inaction of Legal Authorities
Accused Pawan Kumar was arrested in Ludhiana in 2021, but the prosecution failed to complete the investigation and file a chargesheet within the legal period of 60 days. The accused then applied for default bail under Section 167(2) of the CrPC, which was granted on March 15, 2021. However, the bail conditions were a sum of Rs 1.10 crore and a bank guarantee of Rs 55 lakh. The accused could not fulfil the condition and remained in jail for 4 years.
Court's Criticism of Legal System
The court also questioned the inaction of the District Legal Services Authority and said that it did not help in the release of the accused. The court pointed out that the charges against the accused had not been framed yet, and he was being punished without a hearing. The court emphasized that the basic concept of justice had been violated in this case.
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