Merely Because There Are Allegations Arrest Cannot Be Made : Bombay High Court

In a notable development, the Bombay High Court has granted interim bail to Mahesh Devchand Gala, who was arrested by the Central Goods and Services Tax (CGST) authorities. The court criticized the authorities for Gala's extended detention, calling it "high-handed and illegal."

 

Gala, a Malad West, Mumbai resident, was detained by the CGST in relation to an old case from 2021. He had represented Om Sai Nityanand Management Pvt. Ltd. during an investigation. The company's accounts were audited from 2017 to 2020, uncovering violations amounting to approximately Rs. 4.48 crores.

 

In response to his arrest, Gala filed a writ petition under Article 226 of the Indian Constitution, seeking to nullify his arrest and have it declared illegal. He also requested interim cash bail or regular bail. During the proceedings, senior advocate Mr. Aabad Ponda, representing Gala, argued that his client had cooperated with the authorities throughout the investigation. He pointed out that the audit occurred in 2021 and that Gala had represented the company at that time. Additionally, Mr. Ponda noted discrepancies in the CGST authorities' timeline, highlighting a 13-hour delay in Gala's presentation before the Magistrate.

 

The bench, consisting of Justice Revati Mohite Dere and Justice Manjusha Deshpande, concurred with Mr. Ponda's arguments. The court remarked, "Prima facie, the justification given by respondent No. 2 explaining the detention of the petitioner does not appear to reason." The court noted that the GST violations investigation was conducted in 2021 and that Gala had already appeared before the authorities on behalf of the company. The court also mentioned that the CGST's explanation for generating the GST returns seemed to be an "eyewash" to show that Gala was produced within the required 24-hour period.

 

The court emphasized, "Arrest is a serious matter and cannot be made in a routine manner on a mere allegation of commission of an offence, inasmuch as, an arrest can cause incalculable harm to the reputation and self-esteem of a person."