The Delhi High Court has refused bail to an accused in a cyber fraud case involving a fake trading application. The Court observed that the material on record prima facie shows laundering of approximately ₹43.33 crore through layered and circular transactions.
Justice Girish Kathpalia passed the order while dismissing the bail application.
The Court remarked:
“It is not a case of simple cheating in the course of transactions. It is an intricate mesh of laundering of money not just vertically but horizontally as well, which is under investigation… Such vast expansive frauds hit economy of the country severely.”
₹43.33 Crore Routed Through Proprietorship Account
According to the prosecution, the accused routed large sums through circular and layered transactions linked to the fake trading app.
The Court noted that ₹43.33 crore was credited to the bank account of the accused’s proprietorship concern within six months.
In contrast, the accused, Rohit Gagerna, argued that only ₹12,100 was credited to his personal account.
Authorities booked him under Section 318(4) of the Bharatiya Nyaya Sanhita (aggravated cheating) and Section 313(5) BNS (belonging to a gang of persons habitually committing theft).
However, the High Court found that the record clearly reflected receipt of ₹43.33 crore in the account of the proprietorship concern linked to him.
Court Rejects Defence on Bank Account Operation
The defence submitted that investigating authorities had no objection to operation of the bank account.
Nevertheless, the Court held that this circumstance does not dilute the alleged role of the accused in the offence.
Moreover, the Court noted that the accused failed to produce GST records, purchase or sale invoices, or income tax documents to explain the nature of the transactions.
Bail Application Dismissed
After considering the material on record, the Court concluded that no grounds existed to grant bail. It therefore dismissed the application.
Appearance
Mr. Utkarsh Kumar appeared for the petitioner.
Mr. Amit Ahlawat, APP for the State, appeared along with Inspector Ashish Dubey, Inspector Anand Prakash and SI Ranvijay Singh from PS Cyber Central.
The case is titled Rohit Gagerna v. State.
