HC Rejects Bail to JK Bank Officer, 3 Others
FIRDOUS AHMAD
SRINAGAR, July 21: In a major decision reinforcing the seriousness of white-collar crimes, the High Court of Jammu & Kashmir and Ladakh at Srinagar, led by Justice Sanjay Dhar, has rejected the bail applications of four individuals accused in a ₹53 crore cyber fraud case. The accused—Shahnawaz Ahmad Shah, a probationary officer at J&K Bank, Rumaisa Jan, Aamir Bashir Magray, and Ghulam Nabi Shah—allegedly ran a fake online trading platform named @RSN, swindling crores from unsuspecting investors across Jammu and Kashmir.
Chronology of the Case:
The investigation was triggered by a complaint filed by Firdous Ahmad Dar at Police Station Kangan. Dar alleged that Shahnawaz Ahmad Shah induced him to invest ₹5 lakh into an online scheme promising high returns. Shah, using his official bank position, collected Dar’s Aadhaar, PAN, and banking details, which were subsequently used in unauthorized transactions that eventually led to a lien on Dar’s account.
As the probe deepened, investigators traced a complex web of transactions through accounts held by the accused in multiple banks—J&K Bank, State Bank of India, HDFC Bank, Punjab National Bank, and IndusInd Bank. The total fraud ballooned to around ₹53 crore. Of this, over ₹4.15 crore was found in Shah’s accounts, ₹22.31 crore in Jan’s, ₹26.43 crore in Magray’s, and ₹24.10 crore in Ghulam Nabi Shah’s accounts.
Modus Operandi:
According to the prosecution, the accused lured victims by operating a non-registered, illegal online trading platform that promised unrealistic investment returns. Government Advocate Waseem Gul, appearing for the Union Territory, argued that the platform had no regulatory approvals and existed solely to defraud people.
Thirteen witnesses have already testified, confirming they were duped by the accused. Transaction records also reveal significant fund transfers between the accounts of the accused, indicating a well-planned conspiracy.
Charges and Legal Arguments:
The court noted prima facie evidence under Section 316(5) of the Bharatiya Nyaya Sanhita (BNS)—relating to criminal breach of trust by a banker—against Shahnawaz Ahmad Shah. The other three accused were found to have roles in the conspiracy, attracting charges under Section 61 BNS.
In their bail pleas, the defense—represented by advocates Salih Pirzada, Aamir Hamid, Areeb Kawoosa, and Gagan Oswal—argued that the accused had completed more than 60 days in custody and were entitled to default bail, besides citing medical concerns for Shah and Jan.
However, Justice Dhar dismissed the petitions, pointing out that Section 316(5) BNS is punishable with life imprisonment, and therefore allows up to 90 days of detention before default bail provisions apply. The court noted that the accused had only been in custody for approximately 75 days, falling short of the legal threshold.
On medical grounds, the court observed that Shah’s osteosarcoma diagnosis dated back to 2006, with no recent complications, and that Jan’s condition was non-serious.
Court’s Observation:
Quoting the Supreme Court’s ruling in P. Chidambaram vs Directorate of Enforcement (2020), Justice Dhar underlined the gravity of economic offences, stating they “affect the economy of the country and have wider societal ramifications.” He emphasized that the investigation is still ongoing, with authorities still tracing the origin of funds and identifying other possible collaborators, including Shah’s brother, Owais Ahmad Shah, a student in Bangladesh.
Additionally, the Income Tax Department has been alerted and proceedings under the Prevention of Money Laundering Act (PMLA) are being contemplated.
Ongoing Investigations:
The case is linked to two FIRs—No. 28/2025 at Police Station Kangan and No. 5/2025 at Cyber Police Station Srinagar. The court noted that granting bail at this stage could compromise the investigation, given the scale of the fraud and the potential for tampering with digital and financial evidence.
This ruling marks a firm judicial stance on cyber-enabled economic crimes, sending a strong signal to fraudsters exploiting digital platforms for illegal financial gain.
