The Chhattisgarh High Court has rejected the bail pleas of three accused in a ₹64.10 lakh alleged interstate cyber fraud case involving a network of so-called “mule accounts.” The court observed that such economic offences affect the “integrity of the financial system” and must be viewed seriously while considering bail.
In an order dated February 28, Chief Justice Ramesh Sinha dismissed the bail applications of Jai Baghel, Sheikh Shoaib and Jujesh Sona. The court noted that the pattern of transactions and the magnitude of the amount involved indicated a serious economic impact on unsuspecting citizens.
Case Background
According to the prosecution, the accused, along with other co-accused, were part of an organised network that allegedly opened or operated multiple “mule” bank accounts across different banks. These accounts were reportedly used to receive, transfer and withdraw funds obtained through online fraud.
Investigation records mention suspicious transactions amounting to ₹64.10 lakh. The prosecution informed the court that as many as 128 bank accounts opened at the Raipur branch of Bank of Maharashtra were allegedly used to route proceeds of cyber fraud.
Multiple complaints from different states have been registered on the National Cyber Crime Reporting Coordination Portal, pointing to the possible interstate nature of the alleged operation.
Investigators further found that large sums were deposited into these accounts shortly after they were opened, and nearly the entire amount was systematically withdrawn. The court described this as indicative of “organised misuse” of formal banking channels.
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Prosecution’s Stand
Government counsel S.S. Baghel submitted that the accused were active participants in a structured criminal syndicate and played a direct role in routing and withdrawing the defrauded money. The case diary and charge sheet, according to the prosecution, link several accounts to suspicious financial transactions, establishing a prima facie case.
Defence Arguments
The defence argued that the accused had been implicated mainly on the basis of statements made by co-accused and that no independent evidence directly connected them to the alleged fraud. It was also contended that some co-accused had secured bail from the Supreme Court and that the applicants had already spent considerable time in judicial custody.
Court’s Observations
While rejecting the bail pleas, the court emphasized that the scale of the alleged fraud, the number of victims across states, and the structured transaction pattern suggested that the case was not an isolated incident but part of a larger cyber fraud network.
The court held that in cases involving significant financial crimes, the broader societal and systemic impact must be taken into account while deciding bail applications.
With the dismissal of the three bail pleas, the matter will now proceed further before the trial court. Investigations and related judicial proceedings in the case remain ongoing.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
