Prakash Ghanshayam Bankar vs. The Senior Inspector Of Police And Anr

Held

The Court held that the Applicant is not entitled to anticipatory bail. The Court found that the 'The Lion Book' application, based on the annexed photographs and terms, was clearly a gambling application. The prosecution's contention that the Applicant was the owner of the interconnected betting platform and part of an illegal betting syndicate was supported by his own Instagram post identifying him as a partner in 'The Lion Book 247'. The investigation revealed a large-scale operation involving 67 betting websites, over 2000 bogus SIM cards, more than 1700 fake bank accounts, and transactions through hawala and cryptocurrency. The Applicant's promotion of the app, including inducements for customers and teaching them how to play, indicated his direct involvement. The statement of Ashu Gandhi further corroborated the illegal nature of the operation and the use of fictitious entities. Considering the scale of the offense, the need for thorough investigation, and the material against the Applicant, his custodial interrogation was deemed absolutely necessary. Therefore, the application for anticipatory bail was rejected.

Facts

The Applicant, Sahil Zahid Khan, sought anticipatory bail in connection with a FIR registered for offenses including cheating, forgery, and violations of the Maharashtra Prevention of Gambling Act and the Information Technology Act. The FIR, lodged by a social worker, alleged that the Applicant was a major owner of online betting portals, including 'www.khiladi.com' and 'The Lion Book', which facilitated illegal gambling. The prosecution contended that these platforms operated through interconnected subsidiaries, evaded taxes, and caused significant financial losses to the government. The Applicant claimed he was merely an influencer engaged by a sports management company, M/s. Isports247, to promote 'The Lion Book' under an agreement that stipulated a principal-to-principal basis, denying ownership or partnership. The Applicant had previously approached the Court of Session for anticipatory bail, which was rejected. The investigation revealed the use of numerous fake bank accounts, bogus SIM cards, and hawala/cryptocurrency for transactions.

Key Issues

1. Whether the Applicant is entitled to anticipatory bail under Section 438 of the Cr.P.C. in light of the serious allegations of cheating, forgery, and operating illegal online betting platforms, as per Sections 420, 465, 467, 468, 471, 120-B of the IPC, Section 12(a) of the Maharashtra Prevention of Gambling Act, and Sections 66D and 66F of the Information Technology Act. Petitioner's Arguments: - The Applicant is a celebrity and not the owner of any betting app. - He entered into an Influencer Engagement Agreement with M/s. Isports247 for brand promotion of 'The Lion Book' on a principal-to-principal basis, without creating any partnership or employer-employee relationship. - He only promoted the app as per the agreement and has not received any amount from the agency. - Allegations of tax evasion imply the activities were not entirely illegal. - The games involved skill, not chance, thus the Maharashtra Prevention of Gambling Act is not attracted. - He has returned to India, deposited his passport, and cooperated with the investigation, making custodial interrogation unnecessary. Respondent's (State and Intervenor) Arguments: - The Applicant is the owner of the app 'The Lion Book', not just a promoter. - Evidence includes a screenshot of his Instagram account listing him as a partner in 'The Lion Book 247'. - The agreement with Isports247 is a deliberate attempt to mislead authorities. - The address of Isports247 is fictitious. - The scope of the offense is large, involving significant financial fraud and requiring custodial interrogation.