Court mandates custodial interrogation to trace money trail and unearth larger conspiracy
In a significant ruling, the Delhi High Court has denied anticipatory bail to Gaurav, the applicant accused in a high-profile cyber fraud case involving cryptocurrency transactions. The judgment, delivered by Dr. Swarana Kanta Sharma, J., underscores the necessity of custodial interrogation to effectively trace the money trail, unearth the larger conspiracy, and recover the proceeds of crime amounting to approximately Rs. 1 crore.
The case, originating from FIR No. 153/2025 registered at the Police Station Crime Branch, Delhi, revolves around allegations of cyber fraud wherein Gaurav allegedly induced the complainant to transfer digital currency equivalent to Rs. 1 crore through false assurances and fraudulent representations. The complaint, filed by an individual who claims to have been dishonestly persuaded to transfer USDT 111,247, reveals a complex web of deceit and manipulation involving cryptocurrency wallets and digital assets.
Despite Gaurav's claim of false implication and cooperation with the investigation, the court observed that mere participation in the investigation does not suffice for granting anticipatory bail, especially when surrounding circumstances necessitate custodial interrogation. The court highlighted the applicant's pivotal role in receiving, retaining, and routing the cheated amount, indicating his active involvement in the alleged fraudulent transaction.
The judgment elaborates on the intricate nature of the case, pointing to the use of non-KYC cryptocurrency wallets and encrypted communication platforms by the accused to obscure identities and transactions. The court emphasized the importance of custodial interrogation to access crucial digital evidence, trace the cheated cryptocurrency, and apprehend co-accused individuals.
Furthermore, the court expressed concern over the possibility of the applicant absconding, given the lack of substantial immovable assets linked to him and the yet-to-be-recovered amount of Rs. 1 crore. The court asserted that granting anticipatory bail at this stage could adversely impact recovery proceedings and the ongoing investigation.
The ruling serves as a precedent in addressing the complexities of cyber fraud involving digital currencies, reiterating the judiciary's commitment to ensuring thorough investigations and safeguarding public interest.
Bottom Line:
Anticipatory bail denied in a case involving alleged cyber fraud and cryptocurrency transactions due to the necessity of custodial interrogation for tracing the money trail, unearthing the larger conspiracy, and recovering proceeds of crime.
Statutory provision(s): Bharatiya Nyaya Sanhita, 2023 Sections 318(4), 316(2), 61(2)
Gaurav v. State of NCT of Delhi, (Delhi) : Law Finder Doc id # 2913247
