Supreme Court Grants Bail To Future Maker Directors In Rs 54.77 Crore Service Tax Evasion Case

The Supreme Court on Monday granted bail to Radhey Shyam and another senior official of Future Maker Life Care Pvt Ltd in a Rs 54.77 crore service tax evasion case. The case arises from allegations that the multi-level direct marketing company failed to discharge its statutory tax liabilities.

A Bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi held that continued custody of the petitioners would serve no useful purpose in the tax case. The Court noted that assets worth about Rs 261 crore, including cash and immovable properties linked to the company and family members, had already been attached.

“Be that as it may, taking into consideration all the attending circumstances, however, without expressing any opinion on merits, the instant petition is disposed of and the petitioners are directed to be released on bail subject to their furnishing bail bonds to the satisfaction of the Court of Chief Judicial Magistrate, Hisar,” the Court said.

The Court clarified that the attached movable and immovable assets would continue to remain frozen. This includes bank accounts of the company, the petitioners' family members, and associated persons, unless the Supreme Court permits otherwise.

“It is, however, made clear that the movable and immovable assets including bank accounts of petitioners company, their family members and those who are found associated shall remain attached and no Court shall pass any order de-freezing those accounts without prior permission of this Court and/or except in such cases where such accounts are required to be are operated or assets are required to be disposed of for reimbursement of the verified claims of the investors/customers of the subject company.”

The case arises from a complaint by the Assistant Commissioner, CGST Division, Hisar. It alleges that Future Maker Life Care, which sold agricultural products, health products, and textiles through a multi-level direct marketing network, failed to properly discharge its tax liabilities.

The Court noted that GST returns had not been filed from March 2018 onwards. This resulted in an assessment order of Rs 54,77,88,938 for the period between October 2016 and June 2017.

The order also records allegations that the company was involved in separate predicate offences concerning alleged cheating of investors amounting to nearly Rs 3,000 crore.

The court noted that Radhey Shyam had already spent over four-and-a-half years in custody in the predicate offences and one-and-a-half months in the present proceedings. Co-accused Rajiv Kumar had spent over three years and nine months in custody in the predicate offences, along with six months in the present case.

However, without expressing any opinion on the merits of the allegations, the court granted bail in the present complaint..