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.

Ananya Dixit, an undergraduate student at Symbiosis Law School, Hyderabad, prepared this case summary during her internship with The Cyber Blog India in May/June 2023.