Mumbai’s special PMLA court has granted bail to businessman Raj Kundra in the high-profile Gain Bitcoin Ponzi scam investigation. The decision came after a detailed hearing where Kundra appeared alongside his legal team. The court approved his release on a personal bond of one lakh rupees, with strict conditions including prior court permission for any international travel.
The Enforcement Directorate (ED) had named Kundra as an accused in a supplementary chargesheet filed in September 2023 under the Prevention of Money Laundering Act. According to the agency, scam mastermind Amit Bhardwaj handed over 285 Bitcoins to Kundra in July 2017 for setting up a mining farm in Ukraine. Though the deal fell through, ED claims Kundra still holds those coins, now valued at over Rs 150 crore based on current market rates.
Kundra’s lawyer, Prashant Patil, sharply contested ED’s valuation method during arguments. He pointed out that the Bitcoins were transferred when their total worth was around $1 million, or roughly Rs 6.6 crore at the time. Patil accused ED of cherry-picking April 2024 prices—when one Bitcoin hit Rs 52 lakh—to inflate the figure to Rs 150 crore, ignoring the transaction date’s actual value.
‘Is this fair?’ Patil questioned. ‘If Bitcoin had crashed to Rs 1 on that date, would ED attach just Rs 285 worth? Or nothing if it hit zero?’ He argued that legal precedents demand valuation at the time proceeds of crime are generated—July 2017 in this case—making ED’s Rs 150 crore attachment arbitrary and unlawful.
Patil highlighted Kundra’s consistent cooperation with ED since 2018, including regular appearances for questioning. With bail secured, the team plans to challenge ongoing summons in the Bombay High Court. This development marks a significant turn in the sprawling Bitcoin fraud case that duped thousands of investors across India.