The Telangana High Court released a company director held in custody since September after the Department, having recorded his statement with the trial court’s leave, agreed to bail on conditions.

The Telangana High Court has granted bail to a company director arrested for an offence punishable under Section 132 of the CGST Act, after the Department’s counsel stated that his voluntary statement had been recorded and that he may be released on conditions. [Shaik Mohammed Abdul Jabbar v. Principal Commissioner/Commissioner & Ors., 2026-juristway.com-3278-HC(Telangana)-GST]

Justice B.R. Madhusudhan Rao heard the criminal petition filed under Sections 480 and 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), in a case of the GST Commissionerate, Secunderabad. The petitioner was served an arrest memo, the reasons of arrest and the grounds of arrest on 24 Sep 2026, and was remanded to judicial custody the same day.

Senior counsel for the petitioner argued that offences under Section 132 are punishable with less than seven years’ imprisonment, so that Arnesh Kumar v. State of Bihar and Satender Kumar v. CBI applied and the remand itself was illegal. He submitted that no assessment order had been passed against the private limited company of which the petitioner is a director, that directors cannot be held vicariously liable since the company is a juristic person, and that the petitioner had no criminal antecedents.

The senior standing counsel for CBIC contended that those decisions do not apply in view of Radhika Agarwal v. Union of India ((2025) INSC 272), but submitted that the petitioner may be enlarged on bail on conditions, since his statement had been recorded. On the Department’s application, the trial court had permitted the statement to be recorded by order dated 28 Oct 2026, and it was recorded on 29 Oct 2026 and 30 Oct 2026.

Considering the submissions of the Department’s counsel, the Court held that the petitioner was entitled to bail. He must execute a personal bond of ₹20,000 with two sureties for a like sum each to the satisfaction of the Special Judge for Economic Offences, Nampally. He must also appear before the respondents whenever called on two days’ notice and must not involve himself in similar offences.

The criminal petition was allowed.

2026-juristway.com-3278-HC(Telangana)-GST