Delhi High Court Rejects Anticipatory Bail for CAs in Major Cyber Fraud Money Laundering Probe
The Delhi High Court on Monday firmly rejected anticipatory bail applications filed by two chartered accountants who stand accused in a significant money laundering investigation connected to a massive Rs 640 crore cyber fraud case. Justice Girish Kathpalia dismissed the pre-arrest bail pleas submitted by Bhaskar Yadav and Ashok Kumar Sharma, emphasizing the existence of what the court described as an "intricate mesh of laundering of money" that necessitates custodial interrogation by the Enforcement Directorate (ED).
Court Cites Need for Custodial Interrogation to Unravel Complex Financial Web
In its detailed order, the High Court underscored that the accused, being skilled financial professionals, are alleged to have meticulously crafted the laundering of proceeds of crime across multiple complex layers. The court found substantial merit in the arguments presented by the learned counsel for the Directorate of Enforcement (DoE), concluding that custodial interrogation is critically required to unearth the full extent of this sophisticated financial operation. The bench explicitly brushed aside the defence put forth by the accused individuals, who claimed they were being unfairly targeted merely for their involvement in cryptocurrency transactions.
Clarification on Cryptocurrency and Focus on Middle-Class Investor Exploitation
The High Court provided a crucial clarification, stating, "It is not a case of dealing in cryptocurrency, which per se is not a crime in this country, and the liability of the accused persons is confined to paying tax on the crypto transactions." Instead, the court highlighted that the present cases reveal a vast and intricate network of money movement, involving funds that were fraudulently extracted from the pockets of gullible investors, who primarily appear to belong to the middle class.
The court poignantly observed, "It is hard-earned money of the victims, whose only fault was that they wanted their money to multiply through investments. This basic desire (or call it human weakness) of theirs was exploited by some fraudsters, alluring them to invest in various schemes, which were actually fraudulent."
Additional Serious Allegations and Broader Probe Implications
Furthermore, the High Court brought to light fresh and serious complaints against the accused. These include allegations of assaulting investigating officers, bribing local police personnel to settle cyber fraud complaints, and actively destroying electronic evidence. The court also noted that the role of bank officials needs to be thoroughly investigated and unearthed by the ED as part of its ongoing probe into this sprawling financial scandal.
Origins of the Money Laundering Probe and Modus Operandi
This extensive money laundering investigation originated from two First Information Reports (FIRs) filed by the Economic Offences Wing (EOW) of the Delhi Police. These FIRs were registered to probe charges of cyber fraud amounting to a staggering Rs 640 crore. According to earlier statements from the ED, this colossal sum was generated through a combination of illegal activities including online betting, gambling, fake part-time job scams, and sophisticated phishing operations.
As per the enforcement agency's findings, the money belonging to unsuspecting individuals was systematically "siphoned off" by layering the cheated funds through a network of more than 5,000 Indian bank accounts, often referred to as "mule" accounts. These laundered funds were subsequently uploaded onto PYYPL, a payment platform based in the United Arab Emirates (UAE), further complicating the trail and international dimensions of the case.
