A special court in Mumbai has refused bail to a 41-year-old man accused of allowing his company’s bank account to be used in a multimillion-rupee cyber fraud, ruling that individuals who permit their bank accounts to facilitate criminal transactions “cannot escape from criminal liability.”
The accused, Rahul Gawali, director of a firm named Rahsa Beez Solution, was arrested in July after investigators found that the company’s bank account had been used for a ₹5 lakh transfer in a sprawling stock market scam that cost a complainant more than ₹7.31 crore.
The victim had been lured into a WhatsApp group masquerading as a professional stock advisory team from a multinational bank. Members posed as securities experts, guiding the victim into a series of fraudulent transactions.
Court Rejects Claim of Coercion
In his bail plea, Gawali argued that he, too, had been deceived — claiming the fraudsters had coerced him into opening the bank account by promising certain services. But the court noted that he had filed no police complaint to support his claim.
Prosecutors alleged that Gawali willingly colluded with the main accused and knowingly allowed his firm’s account to be used to channel the proceeds of the fraud.
Special Judge A.V. Gujarathi, rejecting the bail plea, observed that the accused offered no satisfactory explanation for allowing unknown individuals to operate his account, adding that the pattern of transactions indicated “clear involvement” in the offence.
‘Everyone Must Be Aware’
The order delivered a strong message on personal responsibility in economic crimes.
“Everybody must be aware that he or she should not permit another person to misuse his or her bank account for criminal activities,” Judge Gujarathi wrote. “After permitting the use of an account for such activities, one cannot escape criminal liability.”
The court emphasised that bank accounts are central to economic fraud, and without firm accountability, cybercrime networks would continue to exploit willing or negligent intermediaries.
Cyber Frauds and Mule Accounts
Officials said cybercrime schemes frequently rely on “mule accounts” — bank accounts opened or operated by individuals who lend access to third parties. Some participate knowingly for a fee; others claim coercion or ignorance.
Legal experts note that courts across India have increasingly taken a strict stance against such defence arguments, recognising the role of mule accounts in enabling digital crime.
The investigation into the stock market scam is ongoing, and police say they are tracing additional transactions linked to the network. Gawali will remain in judicial custody as authorities continue to examine financial records and digital evidence.
