Aslam Sayyed v. State (NCT of Delhi)

Riya SinghCase Summary

Bail application in a case involving promises of high returns through MLM projects and cryptocurrency investments

Aslam Sayyed v. State (NCT of Delhi)
In the High Court of Delhi
B.A. 3085/2023
Before Justice Swarana Kanta Sharma
Decided on September 15, 2023

Relevancy of the case: Bail application in a case involving promises of high returns through MLM projects and cryptocurrency investments

Statutes and Provisions Involved

  • The Information Technology Act, 2000 (Section 66)
  • The Indian Penal Code, 1860 (Section 34, 419, 420)

Relevant Facts of the Case

  • Umesh Chaturvedi, with others, filed a complaint on June 30, 2022, against S.M. Global firm.
  • The firm, which collected investment money from the public, promised high returns through Multi-Level Marketing (MLM) projects and cryptocurrency investments. Investors are allured by the promises of significant monthly returns and benefits.
  • However, the returns ceased, and the firm’s website became inaccessible. The firm’s Chief Managing Director, Milind Balaso Gadave, allegedly fled to Dubai, leaving the investors defrauded of approximately ₹1.47 crores.

Prominent Arguments by the Advocates

  • The applicant’s counsel argued that the police falsely implicated the petitioner despite not being named in the FIR and having no direct allegations against him. He only exchanged currency from INR to UAE Dirham for SM Global without knowledge of any fraudulent activities. The petitioner’s firm, GAK Exchange Pvt. Ltd., conducted the business with proper licenses and norms. The sales register has recorded these statements.
  • The respondent’s counsel claimed that SM Global transferred ₹98 lakhs to the applicant’s company. The applicant’s company showed financial discrepancies, including significant cash withdrawals and disproportionate sales revenue and profit. He emphasised conducting a custodial interrogation to ascertain the transactions’ details and the business’s true nature.

Opinion of the Bench

  • The investigation was at an initial stage. Furthermore, the evidence reveals financial irregularities in GAK Exchange Pvt. Ltd.’s business transactions. The applicant was suspected of engaging in illegal transactions under the guise of foreign exchange business.
  • There is a need for custodial interrogation due to the significant number of victims (43) and the material indicating possible involvement in fraudulent activities.

Final Decision

  • The court dismissed the bail application.