Anticipatory Bail Granted in Alleged Fake Bank Account & IT Refund Fraud Case

Anticipatory Bail Granted in Alleged Fake Bank Account & IT Refund Fraud Case

The petitioner was accused in a complaint case alleging offences under Sections 406 and 420 IPC, where the complainant claimed that his Aadhaar and PAN were misused to open a bank account in Axis Bank and siphon off income tax refunds amounting to Rs. 45.5 lakh.

According to the complainant, he had approached the petitioner for assistance in obtaining income tax refunds. Later, he discovered that refunds were credited into another account allegedly opened in his name, and the amount was withdrawn. It was further alleged that the petitioner initially agreed to return Rs. 10 lakh but later refused.

The petitioner, however, denied the allegations, asserting that the bank account was genuine and operated with the complainant’s knowledge. The petitioner also argued that the complaint was motivated by business disputes involving a third party.

Issue Before Court: Whether anticipatory bail should be granted in a case alleging fraudulent opening of a bank account and misappropriation of income tax refunds.

HC’s Order: The High Court granted anticipatory bail to the petitioner, finding merit in his submissions and noting serious inconsistencies in the complainant’s version.

The Court observed that if the account were truly fake, it was unlikely that funds would be directly transferred to the petitioner’s housing loan account, thereby creating traceable evidence against himself. It also found it improbable that the complainant remained unaware for years (2014-2017) about the non-receipt of substantial income tax refunds.

The Court noted that the bank itself had stated the account was genuine. The delay in raising objections and the circumstances surrounding the dispute indicated that the criminal proceedings might have been initiated due to business disagreements rather than genuine fraud.

Thus, the Court held that the petitioner deserved protection from arrest and directed that he be released on anticipatory bail subject to conditions under Section 438(2) CrPC / BNSS.

To Read Full Judgment, Download PDF Given Below