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Karnataka High Court quashes organised crime case against bitcoin scamster Srikrishna

The court has also directed the trial court to dispose of the bail petitions filed by the accused petitioners.
Last Updated : 09 July 2024, 16:32 IST

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Bengaluru: In a setback to the Special Investigation Team (SIT) probing the Bitcoin scam, the Karnataka High Court has quashed the order permitting invoking of section 3 of the Karnataka Control of Organised Crimes Act (KCOCA) against Sreekrishna alias Sreeki and Robin Khandelwal.

Justice SR Krishna Kumar noted that an accused involved in continuing unlawful activity, filing of two charge sheets and taking of cognizance within a period of 10 years prior to and preceding the date of commission of the offence is a sine qua non to invoke section 3 of the KCOCA.

On May 20, 2024, the Deputy Inspector General of Police (Economic Offences), CID, Bengaluru had granted approval/permission to the DySP (investigating officer) to invoke section 3 of KCOCA against Sreeki and Robin Khandelwal. This was in connection with a crime registered by the Tumakuru police in 2017, which was reopened in January 2021.

According to the accused petitioners, necessary ingredients to invoke section 3 of KCOCA are completely absent as against them and the order granting permission reflects non application of mind. The petitioners also claimed that while they have been enlarged on bail in the other criminal cases, KCOCA was invoked in Tumakuru case only to deny bail to them.

On the other hand, the state government submitted that though the accused were involved in a crime punishable under section 3 of KCOCA in 2017 itself the offence was detected only in December 2023 and they were arrested.

As on the date of detection of the crime four charge sheets were filed in the preceding period of 10 years and cognizance taken, the DIG was justified in passing the order, it was submitted.

The court noted that section 3 of KCOCA can be invoked against a person, only if as on the date of the alleged commission of offence, minimum of two charge sheets prior to the said date of alleged commission of offence have been filed and cognizance has been taken by the court. “It follows therefrom that it is the date of commission of the offence that has to be reckoned and not the date of detection of the offence especially when the punishment is for the offence committed on a particular date and not on the date when it is detected,” Justice Krishna Kumar said.

The court further noted that in the absence of the mandatory requirements of charge sheets having been filed and cognizance having been taken within a period of 10 years prior to the date of offence, in this case July 17, 2017, the offence punishable under section 3 of KCOCA cannot be invoked.

The court has also directed the trial court to dispose of the bail petitions filed by the accused petitioners by reserving liberty to the SIT to initiate legal proceedings against the petitioners as available in law and in accordance with law, subject to all just exceptions and defences available to the accused.

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Published 09 July 2024, 16:32 IST

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