NEW DELHI: The Delhi High Court (HC) on Tuesday dismissed the bail petition of a man accused in cryptocurrency racket stating that the economic offences corrode the fabric of democracy and are committed with total disregard to the rights and interests of the nation.
The court also said that as a large number of innocent investors had been duped of their hard-earned money, it was not considered appropriate to release the accused. The court was hearing the bail application of one Umesh Verma who was arrested in January this year for allegedly heading a racket that had swindled at least Rs 2.5 crore from some 45 people under the garb of being a cryptocurrency promoter. The 60-year-old was arrested by the Economic Offences Wing of Delhi police on arrival from Dubai where he had fled in 2018, setting up a new business altogether, after having defrauded people in India.
“Economic offence corrode the fabric of democracy and are committed with a total disregard to the rights and interest of the nation and are committed by the 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,” said Justice Anu Malhotra while passing the order.
Verma, along with his son Bharat Verma and others, ran a cryptocurrency chit fund where they induced hundreds into investing in a scheme operating under the name of Pluto Exchange, promising monthly fixed returns of between 20 and 30 per cent.
When the assured returns were not given to the investors, it turned out that he had closed his office of the Pluto Exchange firm at Connaught Place and had gone to Dubai.
The complainants were further allured on the assurance of extra commission if more clients were brought for the investment in the said firm Pluto Exchange.