Supreme Court Overturns HC Relief to Sunil Biyani in GST Scam

• The Supreme Court has overturned a Bombay High Court ruling protecting Sunil Biyani from arrest in a ₹1,200-crore GST scam.
• The High Court had granted protection despite holding that Biyani's anticipatory bail application was premature.
• The Supreme Court ruled that even if an anticipatory bail application is deemed premature, a High Court cannot grant interim protection from arrest.
• This sets a precedent for similar cases and raises questions about the implications of this ruling on clients' anticipatory bail applications in GST-related matters.

We have set aside the direction contained in para 6 (giving interim protection for a week from the date on which any future arrest order maybe passed), saying that it is not permissible in law.

In a significant ruling, the Supreme Court has set aside a Bombay High Court decision protecting Future Group's non-executive director Sunil Biyani from arrest in a ₹1,200-crore Goods and Services Tax (GST) scam. The High Court had granted this protection despite holding that Biyani's anticipatory bail application was premature.

The Central government had challenged the High Court ruling before the Supreme Court, questioning whether High Courts possess inherent jurisdiction to grant interim protection from arrest after deeming an anticipatory bail petition premature and unmaintainable.

The Supreme Court's ruling is significant in light of the Central Goods and Services Tax Act, which grants power to arrest under Section 69. The High Court had held that Biyani's anticipatory bail application was premature since no order under this section had been passed by the GST authorities.

However, the Supreme Court has now ruled that even if an anticipatory bail application is deemed premature, a High Court cannot grant interim protection from arrest. This sets a precedent for similar cases and raises questions about the implications of this ruling on clients' anticipatory bail applications in GST-related matters.

The Supreme Court's decision has far-reaching implications for lawyers handling anticipatory bail applications in similar GST-related cases. The ruling sets a precedent that High Courts may not grant interim protection from arrest if an application is deemed premature.

This means that clients facing arrest warrants must carefully consider the timing of their anticipatory bail applications to avoid being denied relief by the High Court. Lawyers should be aware of this development and advise their clients accordingly, as it may impact the outcome of similar cases in the future.

Lawyers should watch for the implications of this ruling on their clients' anticipatory bail applications in similar GST-related cases, as it sets a precedent that High Courts may not grant interim protection from arrest if the application is deemed premature.

Source: Original reporting via The Hindu