CRLP/11007/2022 of Sh. Ashish Malik Vs The State of Telangana on 30 December 2022

ORDER:

1. This Criminal Petition, under Section 439 Cr.p.C., isfiled on behalf of the petitioner, who is arrayed as AccusedNo.5 in ECIR.No. IS/HYZO l2O2O of Hyderabad zone,seeking for post-arrest bail.

2. Heard the submission of the learned counsel for thepetitioner as well as the learned Standing Counsel forEnforcement Directorate who represented the Respondent.3. The matrix of the case as could be perceived throughthe contents of Enforcement Case Information Report(ECIR) is that the 2"d accused, by name Sirimalla Nagaraju,motivated the de /acto complainant and other victims toinvest money in Rosneft Hedge Fund by stating that he isone of the Associates of the said company and assured thatthe invested amount would get doubled in 1g weeks. Healso informed that Rosneft Hedge Fund belongs to aRussian based company and that the petitioner and othersare running Rosneft Hedge Fund. After three months,Rosneft Hedge Fund started functioning with other nameviz. EURESCOIN.NET. When the investors requesteq !g Dr.CSl-Jcrl.P.No.11007 [ol ][2022]

return their money, [Accused ][No'2-Sirimalla ][Nagaraju']asked them to [reinvest ][the amount ][and ][that ][it ][would ][fetch]2007o returns. [After ][collecting reinvested ][amount, ][Accused]No.2-Sirimalla [Nagaraju ][escaped ][with ][f,rfty ][two ][crores ][and]cheated many [people. ][Accused ][No. ][l-Sandeep ][Kaushik ][and]Accused No.4-SunilSingh Chouhan [a-re ][residing ][in]Armenia and [Georgia.]With the money [collected, properties]were purchased1nforeign countries. [A11 ][the ][accused]diverted the Publicmoney in a wrongful [and ][deceitful]manner.

4. Making his submission, [learned counsel ][for ][the]petitioner contended that [initially, ][a ][case ][was registered ][in]the year [2O ]18 and [the ][petitioner ][was ][arrested' ][Leamed]counsel submitted [that ][for the ][purpose ][of ][interrogation']police custody was [sought ][by the ][investigating ][agency and]accordingly, [police ][custody ][was ][given ][for ][seven days ][and]the petitioner [was ][thoroughly ][interrogated' ][Learned]counsel also [submitted ][that ][subsequently' ][the]Enforcement [Directorate ][registered ][the ][present ][case ][and]the petitioner is [in ][judicial ][custody since ].1 [15 ][days']Learned counsel [also]submitted that till [now,]

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proceeds could not be traced and in these circumstances,the petitioner may be enlarged on bail.the petitioner may be enlarged on bail.

5. Vehemently opposing the submission made by thelearned counsel for the petitioner, the learned StandingCounsel for Enforcement Directorate submitted that totally,six cases were registered against the petitioner and otheraccused and indeed, by starting a multilevel scheme, bycreating fake websites and with the help of a shellcompany, crores of rupees were etnbezzled and the case isstill under investigation and therefore, the petitioner is notentitled for bail.

6. The learned Standing Counsel for EnforcementDirectorate also submitted that the petitioner, along withhis accomplices, had run MLM schemes and therebycheated people to a large extent. Learned StandingCounsel also stated that the petitioner and other accusedsiphoned off money of the investors and in that regard,multiple complaints were given and multiple cases wereregistered against the petitioner and his accomplices.

7. The learned Standing Counsel for EnforcementDirectorate further made a submission that there is,direct

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proof to show that amounts were transferred to theaccount of the petitioner. Learned Stalding Counsel alsostated that the petitioner, along with other accused,organized grand seminars and in those seminars, thepetitioner and other accused gave wide publicity abouttheir fake investment plans and promised huge returns.Learned Standing Counsel further stated that as theinvestigation is still pending, the petitioner is not entitledfor bail.

B. It is incumbent on part of this Court to take note ofthe provisions regarding bails as laid down in the Code ofCriminal Procedure ald also the mandate of law asenunciated under Section 45 of the prevention of MoneyLaundering Act 2OO2. As per the said provision, no personaccused of an offence under the said Act shall be releasedon bail unless the Public prosecutor had been given anopportunity of hearing and when the public prosecutoropposes the relief claimed, the Court is satisfied that thereare reasonable grounds for believing that the applicant isnot guilty of such offence and that he is not likelv tocommit any offence while on bail.

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9. In the case on hand, the learned Standing Counselfor Enforcement Directorate clearly projected prtma facieinvolvement of tJle petitioner in the acts of MoneyLaundering. That apart, submission is also made that theinvestigation is still pending.

10. Therefore, this Court is of the view that it would bewholly undesirable to enlarge the petitioner on bail asprayed for.

1 1. Resultantly, the Criminal Petition is dismissed.

12. Miscellaneous petitions, if any pending, shall standclosed.

SdI K. AMMAJIASSrsrANreF#IxARSECTION OFFICER

//TRUE COPY//

To,

1The Metropolitan Sessions. Judge_Cum_special Court Constituted under;;:t#;t l" or the prevention oiMor"v r-r,,nauri,is;. t, 2022 atNampary,;;:t#;t l" or the prevention oiMor"v r-r,,nauri,is;. t, 2022 atNampary,

2. The Metropolitan Sessions Judge, Hyderabad

3. One CC to SRl. ANIL Directorate, High Court of Tetangana, 'RASAD [TlWARl, ]nvi"Jrl'ilul[Standing ][Counsel ][for ][Enforcement]Directorate, High Court of Tetangana, 'RASAD [TlWARl, ]nvi"Jrl'ilul[Standing ][Counsel ][for ][Enforcement]

4. Copy to Special public prosecutor Director of EnforCopy to Special public prosecutor Director of EnforHyderabad zonar om"e, s -10-114, s" Ftoor;r#:H"rff]E:li9ffi"i]Hyderabad-500004. [OUT]Hyderabad-500004. [OUT]

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5. Two CD Spare Copies

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HIGH COURT

CSL, JDATED: 3011212022

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The Criminal Petition is Dismissed

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