In a significant development, the Calcutta High Court has granted bail to Viraj Subas Patil, an accused in a high-value money laundering case linked to alleged forex trading fraud worth Rs 77 crore. The Enforcement Directorate (ED) has been investigating the case.
Court's Decision and Reasoning for Bail
Justice Suvra Ghosh of the Calcutta High Court passed the bail order on Friday. The court noted that Viraj Subas Patil has been in custody since December 24, 2023. While acknowledging that the investigation by the ED is complete, the court observed that the trial in the matter is yet to commence.
Emphasizing the fundamental right to liberty, Justice Ghosh considered it sacrosanct and a key factor in the decision to grant bail. The court also took into account Patil's role, noting he was an independent distributor for the platform IX Global from April 2020.
Details of the Alleged Forex Fraud
The case stems from a First Information Report (FIR) which alleged that the accused individuals, including Patil, orchestrated a complex financial fraud. The primary allegations include:
- Fraudulently opening fictitious bank accounts with Canara Bank.
- Using these accounts to facilitate fictitious transactions amounting to approximately Rs 77 crore.
- Operating through the IX Global platform, where investors were educated about forex trading and given training.
- Instructing these investors to funnel their funds into another entity, TP Global FX, with promises of substantial and high returns on their investments.
Implications and Next Steps
The grant of bail marks a pivotal moment in this extensive financial probe, though it does not signify an end to the legal proceedings. The Enforcement Directorate's completed investigation will now form the basis for the prosecution's case during the trial. The court's order underscores the legal principle that prolonged detention without the commencement of trial must be balanced against personal liberty.
All eyes will now be on the upcoming trial proceedings, where the evidence gathered by the ED will be scrutinized. The case highlights the ongoing crackdown by Indian financial investigation agencies on sophisticated forex trading schemes and money laundering activities posing risks to investors.
