Economic Offences Corrode Fabric Of Democracy, Against National Economy And National Interest: Delhi High Court

The Delhi High Court on Tuesday observed that economic offences corrode the fabric of democracy and are against the national economy and national interest of the Country where innocent investors are duped of their hard earned money. 

The observation came from Justice Anu Malhotra while denying bail to a man accused in a crypto currency chit fund scam for allegedly inducing people to invest in the crypto currency in his firm on the assurance of high return upto 20-30% per month. 

"...taking into account the allegations levelled against the applicant of he with his associates having duped the complainants allegedly to the tune of Rs.2.5 Crores in the instant case which relates to an alleged commission of an economic offence, which offences corrode the fabric of democracy and are committed with total disregard to the rights and interest of the nation and are committed by breach of trust and faith and are against the national economy and national interest, whereby a large number of innocent investors have been duped of their hard-earned money, it is not considered appropriate to release the applicant on bail," the Court said. 

According to the status report filed in the matter, it was stated that the complainants were allured on the assurance of extra commission if more clients were brought for investment in the firm. 

Moreover, it was stated that the applicant and other accused in the case closed the office of their firm without returning the amount of the complainants.

It was the applicant's case that there was no prima facie case of cheating made out and that it is the prosecution's case based on the statements of complainants. 

It was further argued that the investors were aware of the fluctuating market of crypto-currency and non-certainty of returns and thus, having indulged in a speculative market, they cannot level allegations of cheating against him. 

Looking at the facts of the case, bail was denied to the applicant.

The Court osberved that the fact that despite running a gold business, the applicant did not return the mounts due to the complainants, cannot be overlooked. 

Title: UMESH VERMA v. STATE

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