Bitcoin 'ponzi' scheme accused bail rejected

MUMBAI: Observing that her involvement in a serious offence of money laundering is prominent right from its inception, a special PMLA court on Thursday rejected the bail plea of Simpy Bhardwaj , a relative of a deceased Pune-based businessman who was accused of running a Rs 20,000-crore multi-level marketing scam involving bitcoin investments.

Simpy (36) was arrested by the Enforcement Directorate in December. “Admittedly, the investors could not get even a penny of return for their huge investments and the total collection made by “VTPL” (Variable Tech Pvt Ltd) through accused persons and their associates (including the applicant (Simpy) is approximately Rs 6,600 crore which is nothing but the POC (proceeds of crime),” special judge MG Deshpande said.

Key accused Ajay Bhardwaj, Simpy’s husband is absconding. In a 25 page order copy, the judge said that it cannot be ignored that Simpy’s family owns and lives in a palatial Delhi farmhouse situated valued at approximately Rs 5.4 crore and boasts all the latest and luxurious amenities such as an indoor swimming pool, gymnasium, Jacuzzi, multiple staff quarters, etc. “The Enforcement Directorate’s specific contention is that the source of income to build the said farmhouse has not been disclosed, pointing out the same as Proceeds Of Crime,” the judge said.

The judge also said that the investigations revealed the use of high-end vehicles and how the Bharadwaj family had employed a huge staff, including personal assistants, security officers and guards, cooks and domestic help without justifying a lawful and valid source for the same. “Yet, the Income Tax return submitted by the applicant for the year 2019-20 shows her gross total income to be Rs 2.48 lakh.

The cumulative income of her entire family from the IT record indicates only Rs 5.07 lakh per year, but the luxurious lifestyle does not justify the same,” the judge said. Special public prosecutor for the ED, Kavita Patil, had strongly opposed the bail plea contending that granting the relief might lead to evidence tampering and intimidation of witnesses, considering Simpy’s influence.

Earlier this month, the ED provisionally attached properties worth Rs 97.8 crore belonging to businessman Raj Kundra and his actor wife Shilpa Shetty in the case. The ED arrested Simpy from Delhi and alleged she was actively involved in a crypto currency fraud committed by Ajay and Ajay's brother, the late Amit Bhardwaj, along with others. The main allegation against the trio is that they lured investors by promising high returns on their bitcoin business. Seeking bail, Simpy submitted that she was arrested solely on the basis of being Ajay’s wife.