The special PMLA court on Thursday rejected the bail application of Simpy Bhardwaj, arrested in connection with the country’s biggest Bitcoin-based Ponzi scheme valued at Rs6,606 crore and involving Delhi-based Variable Tech Pvt Ltd. The court observed that granting her bail would paralyse the investigation.
“The applicant has concealed material information, such as IDs and passwords, which is exclusively within her special knowledge. Without this information, further investigation cannot proceed fruitfully and may become paralysed. Additionally, her husband has been absconding ever since. Hence, there is every possibility that further investigation would not be safe if the applicant is released on bail,” special judge MG Deshpande said while refusing to grant her bail. Besides, the court said statement of witnesses demonstrates the prominent role of the applicant in the scam.
Legal Battle Over Alleged Ponzi Scheme Involvement And Bail Denial
The Enforcement Directorate initiated an investigation into the Ponzi scheme in 2018, on the basis multiple cases registered by Maharashtra and Delhi police against Variable Tech, the late Amit Bhardwaj, Ajay Bhardwaj, Vivek Bhardwaj, Simpy Bhardwaj, Mahender Bhardwaj and other multi-level marketing agents. The ED has claimed that Bhardwaj family members with other agents and associates collected 80,000 Bitcoins (valued at Rs6,606 crore as on November 2017) from gullible investors.
Simpy was arrested on December 17, 2023, by the ED. In the bail application, Simpy’s lawyers claimed that she was never director or promoter of or concerned with Variable Tech, nor held any position of responsibility.
The plea was opposed by ED prosecutor Kavita Patil, contending that Simpy actively participated in creating this Ponzi fraud and managed to deceive many gullible investors into pooling their money or Bitcoins into her illegal unauthorised collective investment scheme. She actively assisted in appointing a team of sales and marketing personnel nationwide under a multilevel marketing model. These personnel, in turn, tapped into a vast pool of gullible investors.
Alleged Lavish Lifestyle And Unjustified Income Discrepancy In Ponzi Scheme Case
The court noted that the Bhardwaj family did not repay the money invested by many in their scheme but utilised it for their own luxurious life. “It cannot be ignored that the applicant’s family owns and lives in a palatial farmhouse, which is valued at approximately Rs5.4 crore and boasts all the latest and luxurious amenities such as an indoor swimming pool, gymnasium, Jacuzzi, multiple staff quarters, etc. The Enforcement Directorate’s specific contention is that the source of income to build the said farmhouse has not been disclosed, pointing out the same as proceeds of crime,” the court noted.
“Additionally, the investigation revealed the use of high-end vehicles by the applicant without any disclosed source for the purchase thereof. Moreover, the family owns a number of high-end luxury cars without justifying the source thereof. The investigation also revealed how the Bharadwaj family had employed a huge staff, including personal assistants, personal security officers, security guards, cooks and domestic helps without justifying a lawful and valid source for the same. Yet, the income tax return submitted by the applicant for the year 2019-20 shows her gross total income to be Rs2.48 lakh with different sources thereof. The cumulative income of her entire family from the IT record indicates only Rs5.07 lakh per year, but the luxurious lifestyle does not justify the same,” it added.
