Accused in custody since August 2026; court observes investigation complete and evidence documentary; bail granted with stringent conditions under Health Security and National Security Cess Act, 2025
In a significant judgment dated October 17, 2026, the Karnataka High Court, presided over by Justice S. Vishwajith Shetty, granted regular bail to S. Nithyananda, the petitioner accused in Crime No. 37/2026, involving alleged violations under Section 26(2) of the Health Security and National Security Cess Act, 2025. The petitioner was apprehended on August 20, 2026, in connection with charges of manufacturing pan masala using six machines installed at his factory since April 2024, evading the payment of Goods and Services Tax (GST), and failing to submit the mandatory declaration regarding the machinery.
The petitioner had initially sought bail before the Special Judge's Court, which was denied on September 1, 2026. Subsequently, an appeal to the Sessions Court was also dismissed on October 6, 2026, prompting the petitioner to approach the High Court under Section 483 of the Bharatiya Nagarik Suraksha Sanhita, 2023.
The High Court carefully examined the case facts, noting that the investigation was complete and the final report had been filed. The prosecution's allegations rested primarily on documentary evidence, which lessened the risk of tampering or interference by the accused. Furthermore, the maximum punishment prescribed for the offence was imprisonment for up to five years, a factor considered while granting bail.
Justice Shetty emphasized that while the gravity of the offence was not undermined, the petitioner's right to bail must be upheld given the circumstances of the case. The Court accordingly allowed the bail petition, subject to the following conditions to ensure compliance and cooperation with the trial process:
a) Execution of a personal bond of Rs. 1,00,000 along with two sureties of the same amount, to the satisfaction of the jurisdictional trial court.
b) Mandatory appearance of the petitioner on all scheduled hearing dates unless exempted by the trial court for valid reasons.
c) Strict prohibition on the petitioner from directly or indirectly threatening or tampering with prosecution witnesses.
d) A clear directive that the petitioner shall refrain from engaging in any similar offences in the future.
This judgment underscores the Court's balanced approach in safeguarding the rights of the accused while maintaining the integrity of the legal process under the newly enacted Bharatiya Nagarik Suraksha Sanhita, 2023. The decision also highlights the importance of documentary evidence and completion of investigation as pivotal factors in bail considerations.
Bottom Line:
Regular bail granted where investigation was complete, final report had been filed, allegations were based on documentary evidence, accused had been in custody since 20.08.2026, and the maximum punishment for the alleged offence was five years.
Statutory provision(s):
Section 26(2) of the Health Security and National Security Cess Act, 2025; Section 483 of Bharatiya Nagarik Suraksha Sanhita, 2023
S. Nithyananda v. State of Karnataka, (Karnataka) : Law Finder Doc Id # 2999819
