The Karnataka High Court has granted regular bail to S. Nithyananda, a Bengaluru-based pan masala manufacturer accused of evading GST and failing to file prescribed declarations for machinery installed at his factory. Justice S. Vishwajith Shetty allowed his plea after noting that the investigation had been completed, the final report had been filed, and the allegations were based on documentary evidence.
The order was passed on October 17, 2026, in Criminal Petition No. 15828 of 2026.
The case was registered as Crime No. 37/2026 by the Directorate General of GST Intelligence (DGGI), Bengaluru Zonal Unit. Nithyananda approached the High Court seeking regular bail under Section 483 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023.
He had been arrested on August 20, 2026. His first regular bail application was rejected by the Special Court for Economic Offences, Bengaluru, on September 1, 2026. He subsequently approached the jurisdictional Sessions Court, which dismissed his application in Criminal Miscellaneous No. 8888/2026 on October 6, 2026. He then moved the High Court.
According to the prosecution, authorities received credible information and conducted searches and seizures at Nithyananda's factory and residential premises. Investigators alleged that he had installed six machines at his factory and had been manufacturing pan masala since April 2024.
The prosecution further alleged that Nithyananda had evaded GST payments during this period and failed to submit the prescribed declaration concerning the machinery installed at his factory. The High Court's operative order identifies the alleged offence under Section 26(2) of the Health Security and National Security Cess Act, 2025.
The High Court considered the stage of the investigation and the nature of the material relied upon by the prosecution. The order noted that the investigation had concluded and the final report was already on record.
The court observed, “investigation of the case is now completed and final report is filed.”
It also took note of the fact that the allegations against Nithyananda were based on documentary evidence. Considering these circumstances, the court found that his request for regular bail deserved to be allowed. The order further recorded that the maximum punishment for the alleged offence was imprisonment for five years.
Allowing Criminal Petition No. 15828 of 2026, the High Court directed that Nithyananda be released on regular bail in Crime No. 37/2026. He must execute a personal bond of ₹1 lakh with two sureties for the same amount.
The court also directed him to attend trial court hearings regularly, unless exempted for valid reasons, refrain from threatening or tampering with prosecution witnesses, and not become involved in similar offences in the future.
Case Title: S. Nithyananda v. State of Karnataka
Case Number: Criminal Petition No. 15828 of 2026
