Anticipatory Bail Denied in Online Investment Fraud Case.
06 June 2024
Anticipatory Bail >> Criminal Law | CyberCrime >> Criminal Law | Information Technology Act >> Intellectual Property Rights
Two individuals accused of cheating an investor through an online trading company were denied anticipatory bail by the court. The petitioners, identified as accused number 1 and 2, face charges under the Andhra Pradesh Protection of Depositors of Financial Establishments Act (APPDFE Act), the Indian Penal Code (IPC) for cheating, and the Information Technology Act (IT Act).
The complaint alleges the petitioners, along with others, induced the victim to invest in SA Trading Company. The victim claims she was convinced to invest a significant sum but never received any returns.
The petitioners argued they shouldn't be held liable under the APPDFE Act as it applies only to those directly managing the financial establishment. The court acknowledged the complaint lacked details regarding the petitioners' specific role within SA Trading Company.
While the court avoided commenting on the case's merits, it did emphasize the police must follow proper procedure (Section 41A of the CrPC) if they intend to arrest the petitioners. The court ultimately dismissed the anticipatory bail petition and closed any related pending petitions.
This case highlights the importance of thoroughly investigating online investment opportunities before committing funds. It also emphasizes the legal protections available to those who believe they've been defrauded.
ANDHRA PRADESH PROTECTION OF DEPOSITORS OF FINANCIAL ESTABLISHMENTS ACT, 1999
Information Technology Act, 2000
Code of Criminal Procedure, 1973