Denying bail to a man in a fraud case, the Delhi High Court has observed that cryptocurrency has profound implications on country’s economy which dissolves recognized money into “dark unknown and untraceable money.”
“For, economic offences, unlike most conventional bodily offences, are committed with elaborate planning and expertise. Especially, dealing in crypto currency has profound implications on economy of our country by way of dissolution of recognised money into the dark unknown and untraceable money,” Justice Girish Kathpalia said.
The Court denied bail to one Umesh Verma in an FIR registered in 2020 for the offences punishable under Section 406, 409, 420, 467 and 120B of Indian Penal Code, 1860.
It was alleged that a number of persons had invested in the company of the accused persons, money to the tune of about Rs.50,00,00,000 in the name of crypto currency business.
The Court was informed that 22 investors had settled the matters before the Mediation Centre, Delhi High Court and that Verma continued to pay dues of the victims by way of post- dated cheques or cash.
Dismissing the plea, the Court said that in the name of settlement of claims of the victims, Verma executed settlement agreements with some of them before the Mediation Centre, but did not fully comply with the same.
“It seems that the mediator(s) also simply recorded the Mediation Settlements and concluded the mediations without ensuring that the money was actually returned to the victims. I find substance in the argument of learned prosecutor that the accused/applicant used the mediation process as a tool to create artefact of bona fide, which led to his interim bail and thereafter he continued to ensure that the settlement process goes endlessly and he evergreens the interim protection,” the Court said.
It added that the allegations against Verma in the “multi-victim scam” were quite serious, more so in the light of his antecedents of involvement in as many as 13 more cases of similar nature.
The Court said that prima facie duped 61 investors after painting a rosy picture of getting them returns of 20% to 30% on their investments in crypto currency, which process he continued against the gullible persons even after derecognition of crypto currency.
“And there can be revelation of more such defrauded persons, as the ongoing investigation is unfolding, having reached the number of defrauded investors from 48 to 61,” it said.
Title: UMESH VERMA v. STATE