Girish v. State of Karnataka
In the High Court of Karnataka
Crl. P. 6038/2019
Before Justice K.N. Phaneendra
Decided on September 09, 2019

Relevancy of the case: Bail application in a case where the accused promised 200% returns on cryptocurrencies

Statutes and Provisions Involved

• The Information Technology Act, 2000 (Section 66D)
• The Indian Penal Code, 1860 (Section 406, 420)
• Banning of Unregulated Deposit Schemes Ordinance, 2019 (Section 21(2)(3), 22)

Relevant Facts of the Case

• The accused number 1 instigated the complainant to invest in Bitcoin and iCoin, claiming that the amount would be doubled within six months.
• She also claimed that if a certain amount is deposited, the complainant would get double the amount back from her in 6 months. It was done on her assurance and an ID was created in the complainant’s name.
• He did not receive any money back. On inquiring, she said that there was a problem with the iCoin website. Instead of repaying, she introduced a new scheme and asked him for another ₹25,000. He obliged.
• She paid back ₹ 6,000 in the first week but when asked for the second week’s money, she gave an evasive answer.
• It was alleged that she cheated another person too, and the complainant lodged a complaint with the police.
• The allegations made against accused number 1 were also made against the petitioner.

Opinion of the Bench

• Other than the allegations made against accused number 1, no other allegations were made against the petitioners. It was to be determined during the trial if the petitioners actually intended to join hands with Accused no. 1 to cheat customers.
• Looking at the facts and circumstances of the case, the accused were entitled to bail.

Final Decision

• The petition was allowed and the accused were granted bail, subject to bail conditions.

This case summary has been prepared by Akshita Rohatgi, an undergraduate student at University School of Law and Legal Studies, GGSIPU, during her internship with The Cyber Blog India in January/February 2021.