Prayagraj, September 28, 2026: The Allahabad High Court has granted bail to Kumar Manish in a case related to the Goods and Services Tax (GST) Act. The order was passed by Justice Vikram D. Chauhan in Criminal Misc. Bail Application No. 21215 of 2026. The Court considered the facts and circumstances of the case, the nature of the allegations, the evidence, the period of custody and submissions made by both sides before allowing the bail application.
The matter relates to proceedings initiated by the Directorate General of Goods and Services Tax Intelligence (DGGI), Ghaziabad. According to the High Court order, Kumar Manish was proceeded against under Sections 132(1)(a), 132(1)(f) and 132(1) of the Central Goods and Services Tax Act, 2017. The case is recorded as File No. DGGI/INV/GST/2122/2025-GR E/O/DD-DGGI-RU-Ghaziabad.
Defence Submissions
During the hearing, Senior Counsel appearing for Kumar Manish submitted that the applicant’s company was operating a payment gateway through which payments of online gaming merchants were processed. According to the submissions recorded in the order, payments were received through the payment gateway into an escrow account and the allegations related to diversion of funds received in the escrow account to various entities in which the applicant was stated to be an owner or director.
The defence argued that the offences under Sections 132(1)(a) and 132(1)(f) of the CGST Act were not made out against the applicant. It was further submitted that, at the most, an allegation of abetment could be considered and that there was no sufficient evidence regarding such abetment.
The defence also submitted that the evidence collected against the applicant was documentary in nature and that no further detention was required. Kumar Manish, through his counsel, assured the Court that he would cooperate with the trial proceedings if released on bail.
DGGI’s Stand
The bail application was opposed by counsel appearing for the DGGI. The prosecution submitted that the applicant’s company had diverted funds to five companies in which the applicant was stated to be an owner or director.
At the same time, the prosecution counsel submitted before the Court that, at the best, the offence of abetment could be made out against the applicant. This submission is specifically recorded in the High Court’s order.
Court’s Observations on Bail and Personal Liberty
The High Court referred to the constitutional protection of personal liberty and the principle of a fair procedure. The Court also noted the principle of presumption of innocence pending trial.
While considering the bail application, the Court referred to judgments of the Supreme Court concerning pre-trial detention, speedy trial and the principle that custody before conviction should not ordinarily operate as punishment.
The Court noted that the maximum punishment under Section 132 of the CGST Act is five years, that the prosecution is triable by a Magistrate, and that Kumar Manish had been in jail since April 17, 2026. The Court further recorded that the investigation against the applicant had been completed and the complaint had been filed before the Special Chief Judicial Magistrate, Meerut.
Court Finds Grounds for Grant of Bail
The High Court observed that the opposing side had not placed material or circumstances indicating that the applicant’s release would result in tampering with evidence or influencing witnesses.
The Court also noted that no criminal history or antecedents of the applicant had been brought to its notice. It further observed that there was no likelihood of the trial being concluded in the near future.
After considering the nature of the case, evidence, alleged complicity, period of detention and submissions made by the parties, the Court concluded that the applicant had made out a case for bail and allowed the bail application.
Bail Granted With Conditions
The High Court directed that Kumar Manish be released on bail on furnishing a personal bond and two sureties to the satisfaction of the concerned court.
The bail order includes several conditions, including that:
- The applicant will not tamper with evidence during the trial.
- He will not pressurise or intimidate prosecution witnesses.
- He will appear before the trial court on dates fixed by the court, subject to permitted exemptions.
- He will not commit a similar offence.
- He will not directly or indirectly induce, threaten or promise any person connected with the case in a manner that could affect the proceedings.
- He will not leave India without prior permission of the Court.
- Any change of residential address will have to be communicated to the concerned court in writing.
The Court further stated that in case of violation of any of the bail conditions, the prosecution would be at liberty to move an application for cancellation of bail before the High Court.
Proceedings to Continue
The Allahabad High Court’s order concerns the grant of bail and does not amount to a final determination of the allegations or the merits of the case. Further proceedings will continue before the competent judicial forum in accordance with law.
Note: This report is based on the High Court’s bail order dated September 28, 2026. The submissions of the defence and prosecution have been presented separately, and the grant of bail should not be construed as an acquittal or final exoneration in the case.
