Bitcoin scam: Karnataka High Court says invoking of stringent organised crime law against hacker Sriki was illegal

Justice S.R. Krishna Kumar passed the order while allowing separate petitions filed by Sriki and Naresh Kumar Khandelwal, a resident of Bardhaman in West Bengal and father of Robin who is another accused.

In a setback to the Special Investigating Team (SIT) probing the alleged Bitcoin scam, the High Court of Karnataka has declared as illegal the action of invoking the Karnataka Control of Organized Crimes Act (KCOCA), 2000 against the hacker and prime accused Srikrishna Ramesh alias Sriki in the first case registered in 2017.

Pointing out that invoking KCOCA violated a condition prescribed under Section 2(d) of the Act for invoking this law against the accused involved in criminal cases, the court quashed the sanction granted on May 20 by the Deputy Inspector General of Police (CID) to the SIT to invoke Section 3 of the KCOCA against Sriki (29) and another accused Robin Khandelwal (35).

Justice S.R. Krishna Kumar passed the order while allowing separate petitions filed by Sriki and Naresh Kumar Khandelwal, a resident of Bardhaman in West Bengal and father of Robin.

As per Section 2(d) of KCOCA, the High Court said, the provision of this law could be invoked against the accused in a criminal case if they are allegedly found involved in ‘continuing unlawful activities’ as defined in the Act.

For this purpose, Justice Kumar said, the Section 2(d) makes it clear that the provision of KCOCA can be invoked against an accused person only if, as on the date of commission of present alleged offence, minimum of two charge sheets were filed within the preceding period of 10 years from the date of commission of the present offence, and the trial court had taken cognisance of offences against him based on those charge sheets.

In Sriki’s case, the High Court said, there was no charge sheet filed against him and the another case prior to registration of Bitcoin case on July 17, 2017. Hence, the SIT could not have invoked the provisions of KCOCA taking into account four charge sheets filed against him subsequently, between 2021-24 in four different criminal cases.

The High Court rejected the SIT’s contention that requirement of existence of more than two charge sheets during preceding 10 years has to be taken into consideration from the date of detection of crime, and not from the date of registration or commission of the offence to invoke provisions of the KCOCA.