Mumbai Special Court Denies Bail to Ukrainian Actor in Major Investment Fraud Case
A special court in Mumbai has delivered a significant ruling by rejecting the second bail application of Armen Garun Ataian, a Ukrainian national and actor, in a high-profile money laundering case involving Rs 148.89 crore. The case is connected to the Torres Jewellery investment fraud, which has left thousands of investors in financial distress.
Serious Allegations of Fake Citizenship Documents
Special Judge RB Rote, presiding over the case, highlighted grave concerns regarding the accused's conduct. The court noted that there are serious allegations that Ataian procured and used a fake birth certificate to falsely claim Indian citizenship. This act of allegedly forging documents to establish a fraudulent identity has raised significant legal and ethical questions.
Judge Rote emphasized that the accused was residing in India without a valid passport or visa, further complicating the matter. A separate criminal case has been registered against Ataian for this alleged procurement of fake documentation, underscoring the severity of the accusations.
Stringent Approach to Economic Offences
In his detailed order, Judge Rote articulated a firm stance on economic crimes, stating that they require a more stringent approach compared to other offences. He explained, "An economic offence is committed with cool calculation and deliberate design with an eye on personal profit, regardless of the consequence to the community. A disregard for the interest of the community can be manifested only at the cost of forfeiting the trust and faith of the community in the system to administer justice in an even-handed manner."
The judge further elaborated that economic offences with deep-rooted conspiracies and involving massive losses of public funds must be viewed as grave crimes that threaten the financial health of the entire country.
Magnitude of the Fraud and Investor Impact
The court detailed the extensive scale of the fraud, noting that approximately 14,964 investors have suffered a collective loss of Rs 148.89 crore in this case alone. Additionally, three other similar crimes have been registered against the company in different police stations, indicating a pattern of fraudulent activities.
Judge Rote pointed out that while the misappropriated amount totals about Rs 148.89 crore, property worth only Rs 32 crore has been attached so far. This discrepancy highlights the ongoing challenges in recovering the lost funds and ensuring justice for the victims.
Role of the Accused and Flight Risk Concerns
The prosecution argued that Ataian played a crucial role in the conspiracy by allegedly introducing co-accused Tausif Riyaz, also known as John Carter, to the absconding foreign national accused. He is also accused of assisting in opening the company's showrooms in India, thereby facilitating the fraudulent operations.
The judge observed that Ataian remained in close contact with the key accused until they fled India, raising concerns about his involvement and potential to tamper with evidence. Given that the main accused are still absconding and the investigation is ongoing, the court found a high possibility of Ataian fleeing or interfering with prosecution evidence if released on bail.
Defence Arguments and Court's Rejection
Ataian, who has been in custody for a year, sought release on the grounds that the investigation was complete and the chargesheet had been filed. His defence team argued that he was neither a director nor a shareholder of the company and that the allegations against him were based on hearsay.
However, the prosecution strongly opposed the bail plea, emphasizing the serious nature of the economic offence and the large magnitude of the fraud. After considering all aspects, Judge Rote concluded, "Therefore, considering the nature, gravity, seriousness, large magnitude of the offence, and the larger interest of society at this stage, it is not just and proper to exercise discretion and grant bail to the accused."
This ruling reinforces the judiciary's commitment to tackling economic crimes that undermine public trust and financial stability, ensuring that such cases are handled with the utmost rigor to protect community interests.
