Supreme Court Sets Aside Bail Order in Economic Offence Case -- Appellant Appeal Against Bail Grant to Respondents Succeeds Due to Serious Nature of Offence and Accused's Fugitive Status

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Case Note & Summary

The Supreme Court allowed the appeal filed by the complainant against the bail granted to respondent No.1 by the Allahabad High Court -- The Court found that the High Court had erred in granting bail without proper consideration of the serious nature of the economic offence, the accused's conduct as a fugitive, and his criminal antecedents -- The offence involved cheating, forgery, and criminal breach of trust amounting to ₹6.5 crores -- Respondent No.1 had remained absconding for over 20 months and was operating under multiple aliases with forged Aadhaar cards and PAN cards -- The Court noted that the principle of parity cannot be applied mechanically when there are distinguishing factors between co-accused -- The bail order was set aside and respondent No.1 was directed to surrender before the Trial Court

Headnote

The Supreme Court set aside the bail order granted by the Allahabad High Court to respondent No.1 -- The Court held that economic offences involving substantial amounts require different considerations -- The principle of parity cannot be applied mechanically when there are distinguishing factors -- The accused's conduct as a fugitive for over 20 months and multiple criminal antecedents were significant factors -- The High Court failed to consider the holistic picture while granting bail -- The offence involved cheating, forgery, and criminal breach of trust amounting to ₹6.5 crores -- Respondent No.1 was found to be operating under multiple aliases with forged documents -- The State's counter affidavit detailed the accused's evasion of arrest and non-cooperation in previous cases

Issue of Consideration: Whether the High Court was justified in granting bail to respondent No.1 considering the serious nature of the economic offence, his criminal antecedents, and his conduct as a fugitive

Final Decision

The Supreme Court allowed the appeal, set aside the bail order dated 12.11.2025 passed by the Allahabad High Court, and directed respondent No.1 to surrender before the Trial Court

2026 LawText (SC) (02) 40

Criminal Appeal No. ................ of 2026 (@ Special Leave to Appeal (Crl.) No. 19708 of 2025)

2026-02-17

SANJAY KUMAR J. , K. VINOD CHANDRAN J.

2026 INSC 161

Not specified in provided text

Rakesh Mittal

Ajay Pal Gupta @ Sonu Chaudhary and another

Nature of Litigation: Criminal appeal against bail order

Remedy Sought

Appellant seeking setting aside of bail granted to respondent No.1 by High Court

Filing Reason

Appellant aggrieved by grant of bail to accused in FIR involving economic offences

Previous Decisions

Sessions Judge rejected bail application on 29.08.2025 -- High Court granted bail on 12.11.2025 -- Supreme Court stayed bail order on 24.11.2025

Issues

Whether the High Court properly exercised discretion in granting bail considering the serious nature of economic offence Whether principle of parity was correctly applied in bail consideration Whether accused's conduct as fugitive and criminal antecedents were adequately considered

Submissions/Arguments

Appellant contended that bail should not have been granted due to serious economic offence State argued that High Court failed to consider holistic picture including accused's fugitive status Respondent No.1 claimed entitlement to parity as co-accused were granted bail

Ratio Decidendi

Economic offences involving substantial amounts require different bail considerations -- Parity cannot be applied mechanically when distinguishing factors exist -- Accused's conduct as fugitive and criminal antecedents are crucial factors in bail determination -- High Court must consider holistic picture while exercising bail discretion

Judgment Excerpts

The learned Judge held that, in the light of the co-accused's bail orders; the period that respondent No.1 had remained in prison; the fact that the chargesheet had been filed; and as the offence was triable by a Magistrate, respondent No.1 was entitled to grant of bail Respondent No.1 had remained a fugitive for more than 20 months since registration of the FIR The investigation conclusively established that respondent No.1 was the principal offender and the master-mind behind the offence

Procedural History

FIR registered on 29.12.2023 -- Respondent No.1 arrested on 08.08.2025 after absconding -- Sessions Judge rejected bail on 29.08.2025 -- High Court granted bail on 12.11.2025 -- Supreme Court stayed bail order on 24.11.2025 -- Supreme Court heard appeal and set aside bail order

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