The Bombay High Court has quashed a non-bailable warrant (NBW) issued against Bollywood actor Arjun Rampal by the Additional Chief Metropolitan Magistrate at Ballard Pier in connection with a 2019 income tax evasion case. Justice Advait M. Sethna of the Vacation Court passed the order on May 16, 2025, after observing that the magistrate’s decision lacked proper reasoning and was passed without applying judicial mind.
Rampal had approached the High Court under Article 482 of the Criminal Procedure Code, 1973 and Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, challenging two orders—one from December 5, 2019, which initiated criminal proceedings, and another dated April 9, 2025, which issued a non-bailable warrant against him.
The judge emphasized that Rampal is being prosecuted under Section 276C(2) of the Income Tax Act, 1961, which deals with willful attempt to evade tax. Notably, this provision attracts a maximum sentence of three years and is considered a bailable offence.
"The Magistrate however not taking into consideration such position, has mechanically passed the order issuing the non-bailable warrant against the petitioner in a bailable offence. On a perusal of the said order, it is clear that no reasons are recorded. In my view, it is a cryptic order which lacks application of mind. This would cause prejudice to the petitioner in the given the facts and circumstances as he would face an order of non bailable warrant in a case of bailable offence," Justice Sethna stated in the order.
The court noted that the actor's legal representative had filed a vakalatnama and an application for exemption from personal appearance on April 9, 2025. Despite this, the magistrate rejected the request, citing non-compliance with bail terms and proceeded to issue the warrant.
The High Court found that such action was legally flawed, especially since the actor’s counsel was present in court and the offence in question was bailable. Justice Sethna concluded that setting aside the warrant would serve the interest of justice.
"The order dated 9 April 2025 passed by the Additional Chief Metropolitan Magistrate, 38th Court at Ballard Pier, Mumbai is quashed and set aside," the court ruled, adding, "This order will not affect the proceedings on merits filed before the learned Magistrate which shall continue in accordance with law."
The other aspect of Rampal’s plea—challenging the initial issuance of process against him on December 5, 2019—was deferred. The court stated that the Income Tax Department had requested more time to file a response and gave them until the next hearing scheduled for June 16, 2025, before the regular court.
The controversy stems from allegations by the Income Tax Department that Rampal wilfully evaded taxes amounting to ₹42.41 lakh for the assessment year 2016–17. In his defence, Rampal stated that upon receiving a notice from the department, Zee Entertainment Enterprises Ltd., which had engaged him, paid ₹32.40 lakh on his behalf on May 13, 2018.
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Despite the payment, the department froze his HDFC Bank account on February 12, 2019, and warned the bank manager not to allow any transactions. A few days later, on February 18, a show-cause notice was served to Rampal, asking him to explain why prosecution under the Income Tax Act should not be initiated.
Rampal acknowledged a delay in tax payment but cited financial constraints as the reason. He maintained that there was no willful intent to evade taxes, which is a key element for launching criminal proceedings under the IT Act.
Appearance:
Advocates Swapnil Ambure and A. Nair, instructed by Naik Naik & Co., appeared for the petitioner.
Advocates Sandeep Gupta and P. A. Narayanan represented the Income Tax Department.
Additional Public Prosecutor P. P. Bhosale appeared for the State.
Case Title: Arjun Amarjeet Rampal vs Income Tax Department (Writ Petition No. 2579 of 2025)
