Nagpur court grants anticipatory bail to Garv Garg in Future Digital Asset Scheme fraud case

A Nagpur court has granted anticipatory bail to accused Garv Garg in the Future Digital Asset Scheme case, linked to an alleged multi-crore investment fraud. Garv Garg is described as the son of Rakesh Garg, the alleged mastermind of the case. The hearing was held before the Special Judge (MPID) and District Judge-9, Nagpur. Judge A.A. Ayachit heard both sides and then ordered anticipatory bail with conditions.

Advocates Kamal Satuja, Kailash Dodani and Hitesh Khandwani appeared for the accused. The defence said Garv Garg had been wrongly implicated and that the chargesheet contained no solid incriminating evidence to prove the charges against him. The prosecution opposed bail, citing the seriousness of the case, the accused's alleged absconding and the need for further investigation.

According to the allegations of complainant Reema Ghosh, several investors were persuaded to put in money on the promise of attractive returns. The complaint said investors were assured that a deposit of Rs 9,000 would fetch Rs 12,500 in an online wallet within a month. It is also alleged that anyone who brought in 25 more investors, each depositing Rs 9,000, was tempted with commission of up to several lakh rupees and merchant coins. It is further alleged that these merchant coins were claimed to be convertible into US dollars.

According to the complaint, many people invested on the strength of these promises. Initially, money was shown in some investors' online wallets, but they allegedly could not withdraw it later. When investors asked for their deposits back, they allegedly did not receive the money, the incentive amount or the other promised benefits. A case of investment fraud was registered on these complaints. The final truth of the allegations is to be decided in the judicial process.

Rakesh Garg is described as the director of CLBP System Pvt. Ltd. and the alleged main accused. The company's head office is said to be in Punjab. Mehul Dixit has emerged as the company's agent in Nagpur. Police have registered offences under Sections 318(4), 316(5) and 3(5) of the Bharatiya Nyaya Sanhita, Section 3 of the Maharashtra Protection of Interest of Depositors (in Financial Establishments) Act and Section 66 of the Information Technology Act.

Rakesh Garg and Mehul Dixit are mentioned as having been arrested, while police had allegedly described Garv Garg as absconding. The prosecution alleges that Garv Garg was a director of the company and held a 10 per cent stake in it. He is allegedly accused of building the website and transferring a large sum from the company's account to his personal account.

The defence said Garv Garg's name is not in the FIR and that the chargesheet also has no solid incriminating material against him. According to his lawyers, he was a director in the company and drew a salary. Merely being a director or holding a stake cannot make him responsible for the alleged fraud. They also said he neither asked any investor to invest nor took money directly from any investor.

The lawyers also argued that describing someone as absconding should not by itself be sufficient ground to refuse anticipatory bail. They cited a Bombay High Court precedent for this. They said the investigation was complete and a chargesheet had been filed, so custodial interrogation was not needed. The accused is ready to cooperate with the investigation and will appear when called by the investigating officer.

The defence also raised the issue of frozen money. According to the lawyers, more than Rs 2.28 crore has been frozen in bank accounts of the accused's father and companies linked to him. The amount linked to investors in the chargesheet so far is about Rs 5.40 lakh. The defence said Garv Garg's father has also given a statement on adjusting the disputed amount against the money in the frozen accounts. The lawyers said nothing remains to be recovered from the accused.

Assistant Public Prosecutor Abhay Jikar opposed the application. He said the case involved a serious economic offence and that the accused is reported to have been absconding for a long time. The prosecution feared that the accused may have induced many people to invest through his website and that more victims could come forward as the investigation widens. Further investigation is continuing and a supplementary chargesheet is likely to be filed against the accused.

According to the prosecution, the accused must be interrogated to obtain the website's passwords, technical details and information on transactions made through it. It also expressed fear that, if granted bail, the accused could influence witnesses, obstruct the investigation or abscond, as he is described as a resident of Punjab.

After hearing both sides, the court granted Garv Garg anticipatory bail. Under the order, he must furnish his passport details and cooperate with the investigation. He must appear before the investigating officer every Saturday for two months, or until a supplementary chargesheet is filed, whichever is earlier.

The court has thus given the accused conditional protection from arrest. The anticipatory bail order does not absolve the accused of the charges. The investigation, further action by the prosecution and the judicial process may continue.