New Delhi, Oct 26 (PTI) The Delhi High Court Tuesday refused bail in a cheating case to a person who ran a cryptocurrency chit fund, saying that economic offences corrode the fabric of democracy and are against the national economy as well as national interest.

Justice Anu Malhotra noted that the present case allegedly involved the accused person, Umesh Verma, duping “innocent investors” to the tune of Rs 2.5 Crores and stated it was not an appropriate case for his release.

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The court observed that the petitioner continued to indulge in the trade of cryptocurrency and accepted investments despite public notices issued by the Reserve Bank of India from time to time against dealing in virtual currencies.

It also said that instead of sharing the assured returns with the investors, the petitioner closed his office in the city and went to Dubai

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“Taking into account the allegations levelled against the applicant, he with his associates having duped the complainants allegedly to the tune of Rs.2.5 Crores, in the instant case which relates to an alleged commission of an economic offence, which offences corrode the fabric of democracy and are committed with total disregard to the rights and interest of the nation and are committed by breach of trust and faith and are against the national economy and national interest, whereby a large number of innocent investors have been duped of their hard-earned money, it is not considered appropriate to release the applicant on bail,” the judge said in the order.

The prosecution opposed the release of the petitioner, stating that the economic offence wing of the Delhi police received 47 complaints in the matter and the petitioner embezzled crores of the investors' money for his personal use and the promotion of his firm Pluto Exchange.

It was claimed that the petitioner and other accused misrepresented the facts and lured the victims on the pretext of high returns and subsequently, fled to Dubai without informing or returning the invested money of the victims.

The accused was evading investigation and was apprehended at the Delhi airport in December 2020 only after a look-out circular was opened in his name, the prosecution said.

The petitioner said that no case for cheating was made out against him in the charge sheet as the investors were aware of the fluctuating market of cryptocurrency and the non-certainty of returns.

He said that in 2018, RBI issued a circular debarring all financial institutions from lending any financial support or providing services to persons dealing with or settling virtual currencies/cryptocurrency which led to the downfall in the trading market as well as the consequent loss of investment and closure of his business.

The petitioner said he did not run away to Dubai as he was required to go there on account of his gold business but “got stuck” because of the pandemic.

The FIR in the case on registered in the year 2020 for the alleged commission of offences under the Indian Penal Code, including cheating and criminal breach of trust.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)