Delhi High Court Impleads ED In Cyber Fraud Case Involving Crores Of Rupees In Fake Stock Market Investments
The Delhi High Court has impleaded the Directorate of Enforcement (ED) in a case of cyber fraud, where fraudsters allegedly duped crores of rupees from people on the pretext of investment in the stock market.
The petition initially included the Central Bureau of Investigation (CBI) and the Securities and Exchange Board of India (SEBI) as parties, seeking their intervention to address the organized cyber frauds.
Justice Jasmeet Singh allowed the impleadment of ED and issued notice to it.
The petitioners allege that the fraudsters posed as stock market experts in WhatsApp groups and convinced people to invest in their fraudulent schemes. The petitioners submit that these funds were transferred to accounts held in various nationalized and scheduled banks, which allegedly failed to comply with Know Your Customer (KYC) norms, allowing the fraudsters to carry out the scam with relative ease.
The petitioners argue that the local police would be ineffective in tracking down the sources of the fraud and its connection to money laundering activities abroad.
The petition thus seeks to direct the Union of India to entrust the investigation to a Central Investigating Agency.
It also seeks to direct SEBI to alert citizens about this scam by placing full-page advertisements in leading newspapers and social media platforms such as Facebook and Instagram.
The petition seeks direction from the RBI to ensure that all banks strictly comply with the KYC guidelines. Further, to initiate proceedings against erring banks involved in the scam.
Case Title: Kumari Lakshmi & Ors. vs. Union Of India & Ors (W.P. (Crl.) No. 2499 of 2024)
Advocates for the Petitioners: (Advocate on Record) Anshul Gupta, Advocate Kirti Dua, Advocate Shubham Kaushik.