A special PMLA court has summoned businessman Raj Kundra after taking cognizance of the ED’s chargesheet in the GainBitcoin scam case. The agency alleges Kundra holds 285 Bitcoins, currently valued at over Rs 150 crore.
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MUMBAI: A special court under the Prevention of Money Laundering Act (PMLA) on Monday issued summons to businessman Raj Kundra in connection with the high-profile Bitcoin scam linked to GainBitcoin. The court took cognizance of a chargesheet filed by the Enforcement Directorate (ED) and directed Kundra to appear before it on January 19.
Along with Raj Kundra, the court also summoned Dubai-based businessman Rajesh Satija, who has been named as an accused in the supplementary chargesheet filed by the ED in September last year.
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According to the ED, Raj Kundra received 285 Bitcoins from the alleged mastermind of the GainBitcoin scam, Amit Bhardwaj, for setting up a Bitcoin mining farm in Ukraine. However, the project never materialised.
The probe agency claims that Kundra is still in possession of these Bitcoins, which are currently valued at over ₹150 crore.
In its chargesheet, the ED rejected Kundra’s claim that he acted merely as a mediator in the transaction. The agency stated that Kundra failed to provide any documentary evidence supporting this assertion.
Instead, investigators found that an agreement titled “Term Sheet” was signed between Raj Kundra and Mahendra Bhardwaj, father of Amit Bhardwaj. The ED concluded that the deal was effectively between Kundra and Amit Bhardwaj, making the mediator’s argument “not tenable.”
“Thus, it can be safely concluded that Raj Kundra was the beneficial owner of the Bitcoins,”
the ED stated in the chargesheet.
The ED further noted that Kundra remembered the exact number of Bitcoins received in five specific tranches, even after more than seven years. This, the agency claimed, strengthens the case that he was the direct recipient of the cryptocurrency.
Despite multiple opportunities since 2018, Kundra allegedly failed to disclose the wallet addresses where the Bitcoins were transferred. He cited damage to his iPhone X as the reason for the missing information, an explanation the ED considers an attempt to destroy evidence and conceal proceeds of crime.
Raj Kundra, husband of Bollywood actress Shilpa Shetty, has also reportedly been questioned by the ED at its Mumbai office regarding his alleged links with Amit Bhardwaj.
Bhardwaj, director of GainBitcoin, is accused of duping over 8,000 investors of nearly ₹2,000 crore by promising high returns through a Bitcoin-based multi-level marketing scheme. He was arrested in April by Pune Police following cases registered by the Chandigarh Cyber Cell.
GainBitcoin Scam
GainBitcoin allegedly lured investors by promising 10% monthly returns on Bitcoin investments. Once investors deposited their funds, returns allegedly stopped, leading to widespread complaints across multiple states.
While cryptocurrencies like Bitcoin are widely traded, they are not legal tender in India and remain unregulated, making investors vulnerable to such Ponzi schemes.
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