The Supreme Court's division bench, led by Justices MR Shah and CT Ravikumar, ruled that there is no bar to cancelling default bail on merits after the chargesheet is presented.

The issue in the case was whether default bail could be revoked after the chargesheet was presented, when it was granted for failing to file it within 90 days as required by the CrPC. While directing the Telangana High Court to decide on merits the CBI's plea for cancellation of bail granted to Erra Gangi Reddy in connection with the YS Vivekananda Reddy murder case, the bench also stated that there is no absolute bar that once a person is released on default bail, it cannot be cancelled on merits and grounds such as not cooperating with the investigation.

The Supreme Court stated that the High Court decision holding that default bail cannot be cancelled on merits was incorrect "will give a premium to the lethargy or dishonesty of investigating forces". "Court cannot be compelled to not consider the gravity of the offence or examine the merits of the case when accused was not released on merits earlier....Mere non filing of chargesheet will not be enough when strong case is made out", While remanding the case to the High Court, Justice MR Shah read out the operative part of the judgement. On January 5, the

Court reserved its decision on the CBI's petition after hearing from Additional Solicitor General KM Nataraj for the CBI and Senior Advocate B. Adinarayana Rao for Reddy.

On March 15, 2019, Vivekananda Reddy, an Indian National Congress leader, was brutally murdered and discovered at his home in Kadapa, Andhra Pradesh.

Case Title: State through CBI vs. Gangi Reddy

Citation: SLP (Crl) No. 9573/2022