Bombay High Court
Hemant Vishwas Surryavanshi vs Senior Indpector Of Police, Cyber Crime ... on 16 September, 2019
Author: Sarang V. Kotwal
Bench: Sarang V. Kotwal
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CRIMINAL APPELLATE JURISDICTION
CRIMINAL BAIL APPLICATION NO. 731 OF 2019
Hemant Vishwasrao Suryavanshi .... Applicant
Versus
The State of Maharashtra .... Respondent
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Mr. Satyavrat Joshi a/w. Mr. Sunil Kamble, for Applicant.
Mr. Ajay Patil, APP for the State/Respondent.
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CORAM :SARANG V. KOTWAL, J.
DATE :16th SEPTEMBER, 2019
P.C. :
1. The Applicant is seeking his release on bail in
connection with C.R.No. 181 of 2018 registered with Nigadi Police
Station, Pune, which is investigated by the Cyber Crime Cell,
Economic Offences Wing, Pune. The offence is registered U/s.406,
409, 420, 120B, 109 and 201 of the Indian Penal Code and U/s.3
and 4 of The Maharashtra Protection of Interest of Depositors (In
Financial Establishments) Act, 1999 (for short 'MPID Act') and
U/s.66D of The Information Technology Act, 2008. The applicant
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is arrested on 16/03/2018 in this connection and since then he is
in custody. The charge-sheet is already filed and the investigation
is over.
2. The FIR is lodged on 15/03/2018 by one Bhimsen
Agarwal. He has stated in his FIR that, through his friend Hemant
Chavan and the applicant, who was Hemant Chavan's friend, he
came to know about Bit Coin Currency. They represented to him
that if he invested in Bit Coins, he would get good returns. The
informant was told that if the Bit Coins were given to a company
known as Gain Bit Coins Company, the said company was offering
return of 10% per month per Bit Coin and if other members were
brought by the investor to make investment, such investor would
get 8% more commission and if the customers were brought on
two sides of the binary chain, he would get 5% more commission.
The informant has stated that, on the basis of such representation
made by his friend Hemant Chavan, applicant, Kaka Rawade and
one Rupesh Singh, he opened an account with Zeb Pay company
and purchased 8.0585 Bit Coins on 29/04/2016. Eight Bit coins
were transferred to Gain Bit Coin Company by the informant.
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Similar transactions were entered into subsequently by the
informant and in all he had transferred 93.5 Bit coins to Gain Bit
Coin company. Initially, he was getting his returns in Bit coins, but
afterwards the company stopped giving returns. The first
informant made further inquiries and went to Dubai to meet a
Director Amit Bhardwaj of the said company. He also met another
Director Ajay Bhardwaj. Both of them informed that Bit coins
transferred to them were sold and they could not be returned;
instead, the informant would be given similar crypto currency
known as MCAP. On such representation, the first informant
opened another account for receiving MCAP currency.
Subsequently, he came to know that said Crypto currency was not
having much value and he realized that he had lost his money. It is
mentioned in the FIR that the informant had lost almost Rs. 1
crore in the scheme. He had invested in 93.5 Bit Coins, but he had
lost his amount. On this basis, the FIR was lodged against the
applicant, Hemant Chavan, Kaka Rawade and Rupesh Singh. The
applicant was arrested and the charge-sheet is filed. In the charge-
sheet, the allegations against the present applicant are that, prior
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to lodging of this FIR, he was involved in another fraudulent
scheme. The applicant, according to Investigating Agency, was
well versed with such fraudulent schemes and had knowingly
taken part in the present scheme, which is the subject matter of
this investigation. He along with others had conducted various
seminars and had induced various invesetors to invest in the said
scheme.
3. Heard Shri. Satyavrat Joshi, learned counsel for the
applicant and Shri. Ajay Patil, learned APP for the State.
4. Mr. Machhindra Pandit, P.I., Cyber Police Station,
Shivaji Nagar, Pune, has filed his affidavit in reply opposing this
application.
5. Shri. Joshi submitted that there is nothing to show that
the applicant was aware of the fraudulent intention of the main
accused Amit Bhardwaj and Ajay Bhardwaj. He submitted that the
allegations against the applicant show that he was instrumental in
informing the prospective investors about the said scheme. He
submitted that he himself genuinely believed in the scheme and,
therefore, if the main accused had committed any fraud, he was
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not concerned with them. There is nothing to show that he was
acting at the behest or in connivance with the main accused Amit
Bhardwaj and Ajay Bhardwaj. He further submitted that Amit
Bhardwaj is granted bail by the Hon'ble Supreme Court. He also
relied on the order passed by this court in Bail Application
No.1211 of 2019 dated 21/08/2019, whereby, the applicant was
granted bail in connection with C.R. No. 28 of 2018 registered at
Dattawadi Police station, on similar allegations.
6. Learned APP opposed this application and relied on the
averments made in the affidavit in reply, which are in turn based
on the investigation papers. It is mentioned in the affidavit that at
behest of the present applicant, the investors had invested
Rs.1,43,46,516/-. The Bit Coins valued at Rs.2,17,981/- were
recovered from the applicant. The applicant's bank account shows
Zero balance. The charge-sheet shows that there were eight
victims, including the first informant, who have given statements
against the applicant for inducing them to invest in the scheme. It
is further alleged that 280 transactions were made through two
block chains addresses belonging to the applicant, however, this
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particular allegation is not supported by any document. It is
further alleged that the applicant received 1220.022 Bit coins,
however, the forensic analysis shows final balance as zero Bit
coins, therefore, investigating agency has not traced those
1220.022 Bit coins.
7. I have considered these submissions and in
particular, I have perused the statements of the investors like
Ramesh Parmar. This witness has also stated that the applicant
had explained to him about the operation of Gain Bit Coin
Company and that the investors were assured of 10% Bit coins
per month on each Bit coin. This witness, on such representation,
had invested about Rs.9,72,802/-. Thus, his allegations are similar
to those made by the first informant. The other witnesses have
stated that the applicant and other accused had conducted
seminars explaining the concept of Bit coins, Block chain, Bit coin
mining and operation of such scheme. Thus, there is no doubt at
this stage that the applicant had explained the operation of the
scheme to various investors. Whether that would amount to
dishonest inducement, would be the matter for trial. The
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important factor in this matter is that, in spite of thorough
investigation, the investigating agency has not been able to trace
any particular amount to the present applicant and no amount was
recovered from him. Moreover, in the entire charge-sheet there is
nothing to show that the applicant had conspired with the main
accused Amit Bhardwaj and Ajay Bhardwaj, though, allegations
are made that he had conducted seminars and had brought
investors in the scheme. The main accused Amit Bhardwaj is
already granted bail by the Hon'ble Supreme Court under certain
conditions. He is directed to deposit certain amount. The applicant
himself was granted bail in connection with the another offence
registered at Dattawadi Police station which is referred to, herein-
above. The applicant is already in custody since 16/03/2018. The
allegations against him are in respect of commission of offence
punishable U/s.409, 420 and 406 of the IPC. At this stage, it is
difficult to see as to how Section 409 is attracted. The applicant
had not acted as an Agent of any of the investors. The other
offence is U/s.3 of the MPID Act. Therefore, leaving aside Section
409 of IPC from consideration, for the time being, the maximum
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punishment provided is that of 7 years U/s.420 of the IPC. The
applicant is already in custody for more than one and half years.
The investigation is over. The investigating agency may pursue
their remedy U/s.4 of the MPID Act. In this view of the matter, no
purpose will be served by keeping the applicant in custody, in this
situation. Therefore, I am inclined to grant bail to the applicant. .
8. Hence, the following order :
ORDER
(i) In connection with C.R. No. 181 of 2018 registered with Nigadi Police Station, Pune, the applicant is directed to be released on bail on his furnishing PR bond in the sum of Rs.50,000/- (Rupees Fifty Thousand Only) with one or two sureties in the like amount.
(ii) Application stands disposed of accordingly.
(SARANG V. KOTWAL, J.)
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