LI Network
Published on: October 17, 2023 at 16:29 IST
The Delhi High Court, in a recent case, emphasized that online financial scams have detrimental consequences on public confidence in online transactions, thereby undermining the nation’s financial stability.
As a result, Justice Swarana Kanta Sharma denied anticipatory bail to an individual accused in an online financial scam.
The case pertained to a complaint filed under Section 420 IPC at P.S. Cyber South. The complainant had received a Whatsapp message offering part-time earnings in exchange for providing ratings on Google. Subsequently, he was added to a Telegram group and encouraged to complete prepaid tasks to earn commissions and bonuses. Initially, some commissions and bonuses were paid, but eventually, the complainant was defrauded of Rs. 7,99,850.
During the investigation, it was discovered that the defrauded amount had been transferred to a bank account under the name “Sweet Valley Cottages,” of which the accused was the beneficiary and sole proprietor. An astounding Rs. 2.78 crores were received and transferred from this account in a single day, with multiple related cases registered in different states.
The State argued that the accused’s actions were of a serious nature, as he had sent messages to the public on a large scale, effectively laying traps for them to part with their money.
The Court, after reviewing the evidence, noted that the accused had withdrawn Rs. 5 lakhs in cash from the account on the day of the alleged incident and had not cooperated with the investigation.
The Court underscored the significant impact of online financial scams on public trust, emphasizing that in an era where online transactions are integral to commerce, finance, and communication, any compromise in their integrity has far-reaching consequences for society.
Additionally, the Court highlighted that such scams not only erode trust but also deter individuals from participating in online financial activities, potentially hindering economic growth, innovation, and financial inclusion.
In light of the nature and scale of the offense, as well as the fact that the defrauded amount was traced to the accused’s bank account, the Court rejected the anticipatory bail application.
This decision serves as a stark reminder of the need to address online financial scams to maintain public trust and financial stability in the digital age.
