Ahmedabad court sentences ex-BJP MLA, ex-SP to life imprisonment in 2018 Bitcoin extortion case

Ahmedabad: Stating that it was "the need of the hour that widespread corruption amongst public servants and private persons is required to be curbed with a strong hand," a special designated court on Friday convicted 14 persons including an ex-BJP MLA, an ex superintendent of police and sentenced them to life imprisonment in the 2018 kidnapping and Bitcoin extortion case.

Bharat Bhaskarbhai Jadav, Special Judge, (Anti-Corruption Bureau), convicted Nalin Kotadiya, 56, ex-BJP MLA, former Superintendent of Police, Amreli, Jagdish Patel, 46, the then police inspector, local crime branch, Amreli, nine police constables, among other accused.

The ex-MLA Kotadiya, who represented Dhari assembly seat from 2012 to 2017, and others were found guilty of kidnapping a Surat-based businessman, Shailesh Bhatt, who was involved in a multi-crore Bitcoin fraud. The investigation revealed that the suspects had extorted 200 Bitcoin worth Rs12 crore from Bhatt after kidnapping him in a pre-planned conspiracy.

The investigation carried out by CID (crime) found that the victim Bhatt had invested huge funds in Bitcoins in a Surat-based company which "abruptly wind up its business worth Rs8000 crore." Bhatt was alleged to have kidnapped several persons connected with the firm and recovered his Bitcoins

Investigation claimed that Bhatt had himself extorted 2,256 Bitcoins worth over Rs 145 crore from Surat-based person Dhaval Mawani by posing as an income tax officer. Mawani, who was running the Bitcoin firm, had duped hundreds of businessmen who had invested in the company which was running a Ponzi-like scheme.

The accused persons including the ex-MLA, the then Amreli district superintendent, police inspector and an advocate Ketan Patel allegedly conspired to extort money from Bhatt after coming to know how the latter had fraudulently obtained Bitcoins. A team of policemen including inspector Patel and nine constables along with private persons had come to Gandhinagar and kidnapped Bhatt. Bhatt later filed a complaint with the home department and CID (crime) was asked to investigate the case.

"...it is need of an hour that widespread corruption amongst the public servants and private persons is required to be curbed with a strong hand by all and certainly the verdict of the Court has greater magnitude than other means. Corruption affects not only the moral fiber of the society but also destroys the economic stability and progress of the country as well," the judgement noted while holding them guilty.

Taking exception that 25 witnesses who had recorded their statements before a magistrate turned hostile during the trial, the special judge ordered a case of perjury to be registered against them.

"Thus, considering the approach of the witnesses in present case on hand who have turned hostile are required to be viewed seriously as they are willfully turned down to help the real culprits and this kind of attitude of the witnesses are nothing but directly interference with the process of law as per their desire by turning down during the trial and it is considered to be act of those witnesses which tarnishing the reputation of judicial process which is required to be viewed seriously..." the judgement said.