A special court in Mumbai on Friday granted bail to businessman Raj Kundra in connection with the alleged Rs 150-crore Gain Bitcoin ‘Ponzi’ scheme case being probed under the Prevention of Money Laundering Act.
Kundra, husband of actor Shilpa Shetty, appeared before the court after it took cognisance of the chargesheet filed last month by the Enforcement Directorate under the Prevention of Money Laundering Act (PMLA). The court directed him to furnish a surety of Rs 1 lakh and seek prior permission before travelling abroad.
The ED had opposed the bail plea. However, the court granted relief, noting that Kundra had not been arrested during the investigation and was appearing pursuant to summons issued after cognisance of the chargesheet.
Speaking briefly outside the courtroom, Kundra said he had faith in the judiciary but declined detailed comment. “My wife does not let me speak at home and my lawyer does not allow me to speak in court,” he said.
Kundra is among 18 accused named in the case linked to the alleged Gain Bitcoin scam. The ED has alleged that he received Rs 6.5 crore from alleged mastermind Amit Bhardwaj, which was converted into 285 Bitcoins for establishing a Bitcoin mining farm in Ukraine, purportedly to be received by an Israeli national.
Also Read: Raj Kundra chargesheeted by ED in ₹150 crore bitcoin scam
According to the agency, despite multiple opportunities since 2018, Kundra has not furnished the wallet addresses where the Bitcoins were allegedly transferred.
His counsel, Prashant Patil, challenged the ED’s valuation methodology, arguing that the agency had initially pegged the value of 285 Bitcoins in July 2017 at around USD 1 million (approximately Rs 6.6 crore), but later adopted the April 16, 2024 market value of roughly Rs 52 lakh per Bitcoin to project an alleged figure of nearly Rs 150 crore.
“Such an approach of ED is wholly untenable and legally impermissible, as it amounts to pick-and-choose valuation without any statutory backing. The ED cannot be permitted to capitalise on market fluctuations selectively to inflate the alleged proceeds of crime. The relevant date for valuation can only be the date on which the alleged proceeds were generated, i.e. July 2017, and not an arbitrary future date chosen to suit the prosecution,” Patil argued.
He further contended: “At the highest, even assuming the ED's case at face value, the maximum attachable value could only be Rs 6.6 crores, being the value of 285 bitcoins in July 2017. The attachment of properties worth Rs 150 crores is therefore grossly disproportionate, ex facie arbitrary, and liable to be set aside.”
Kundra is understood to be considering moving the High Court to challenge the summons issued in the matter.
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