Money Deposited During Demonetization in One's Own Account Is Not an Offence
Court Quashes Charges Levelled By CBI Against Trader
TIMES NEWS NETWORK
Gujarat high court has quashed cheating and corruption charges levelled by the Central Bureau of Investigation (CBI) against a gold trader after he deposited huge amount in his own dormant bank accounts post-demonetization.
While trashing an FIR, Justice A P Thaker made it clear, “By mere deposit of huge amount in his dormant account cannot be termed as cheating or any offence under the Indian Penal Code or under the Prevention of Corruption Act.”
In this case, Viral Shah deposited total Rs 4.2 crore in his two dormant accounts after the central government demonetized high-value currency notes in November 2016. The limits given to banks by the Reserve Bank of India (RBI) to accept amount up to Rs 50,000 without seeking any explanation from the depositors. Since, Shah deposited a huge amount in his accounts in UCO bank, he was booked for cheating and corruption along with the then bank manager by the CBI. The probe agency charged Shah because he deposited a big amount in his accounts which were last operated in 2013. The bank manager transferred the amount through RTGS after Shah deposited the amount in old notes in his accounts.
Shah approached the high court through advocate Chetan Pandya, who argued that there was no case of cheating made out, if a person deposits money in his own bank account. The lawyer submitted that Shah sold gold and accepted money in old demonetized currency and deposited the notes in bank in the 50-day period the government granted people for exchange. There was no question of cheating and corruption.
The high court accepted that there was no case of cheating or corruption. It said that by depositing the huge amount in his bank accounts, Shah exposed himself and if the government finds that he had not paid due taxes, the government can recover taxes and impose penalty. But this is definitely not a case of cheating and corruption.