ABDUL GAFOOR Vs. ASST. DIRECTOR, DIRECTORATE OF ENFORCEMENT

JUDGEMENT

(1.) This is an application for regular bail filed by the accused No.12 in ECIR No. KZSZO/07/2021 of the Enforcement Directorate, Kozhikode under Sec. 439 of the Code of Criminal Procedure, 1973 (for short, "Cr. P.C").

(2.) The accused is alleged to have committed the offences punishable under Ss. 3 and 4 of the Prevention of Money Laundering Act, 2002 (for short, 'PMLA').

(3.) Multiple FIRs were registered at various police stations in Kerala against one Sri. Nishad (the accused No.1 in the above ECIR) and others alleging the offences punishable under Ss. 406, 420 and 506 r/w 34 of IPC from January 2021 to March 2021. It was alleged in those FIRs that Sri. Nishad, the main accused, along with the remaining accused had cheated several investors by accepting investment under an investment scheme through his three Bangalore based companies (1) Long Reach Global (2) Long Reach Technologies and (3) Morris Trading, by promising high returns of dividend. As per the scheme, the investors will be able to exchange Morris Coins - Crypto currency after the 300-day lock-up period. It was further alleged that the accused also offered high commission income for those who bring more investors to invest in the Morris Coin Crypto currency. It was also alleged that even though the dividend was paid as agreed initially, the accused persons neither paid any dividend thereafter, nor returned the money collected from the investors. The investigation revealed that the accused persons defrauded a total amount of Rs.1200.00 crore under the above-mentioned scheme.