Janampeta Shiva Raj Goud v. State of Andhra Pradesh
In the High Court of Andhra Pradesh
Crl. P. 431/2023
Before Justice K. Manmadha Rao
Decided on January 27, 2023

Relevancy of the case: Bail application in a case involving an online investment scam promising very high returns

Statutes and Provisions Involved

• The Information Technology Act, 2000 (Section 66)
• The Indian Penal Code, 1860 (Section 120B, 420)
• The Prize Chits and Money Circulation Schemes (Banning) Act, 1978 (Section 4, 5)
• The Andhra Pradesh Protection of Depositors of Financial Establishments Act, 1999 (Section 4, 5)
• The Code of Criminal Procedure, 1973 (Section 437, 439)

Relevant Facts of the Case

• The second accused started a business through a website and developed a 10-level plan for their customers. This plan promised them higher income from their deposits.
• Later, the first and second accused bought various properties from their customers’ deposits.
• When the petitioner joined the firm as a member, they started receiving enormous profits.
• The petitioner attracted plenty of clients and received deposits for his schemes. The petitioner participated in multiple firm meetings and, in a criminal conspiracy with the other accused.
• Allegedly, the petitioner persuaded public members to sign up for the company’s programs in exchange for large deposits.

Prominent Arguments by the Advocates

• The petitioner’s counsel argued that the petitioner had been imprisoned for 53 days, and most of the investigation was complete. Further, the petitioner is the scheme’s victim after depositing ₹3,50,000 from their funds with no malicious intent. The counsel argued that co-accused number 27 had received bail after facing identical charges.

Opinion of the Bench

• The bench observed that the petitioner is not the prime accused, and an accused standing on a similar footing has already been granted bail.

Final Decision

• The bench granted the bail application, subject to conditions.