Court Orders FIR Against Petitioner for Alleged Money Mule Activities Under Bharatiya Nyaya Sanhita, 2023
In a significant ruling, the Kerala High Court has dismissed a writ petition filed by Safwan Muhamed Sherif, who sought to unfreeze his bank account held with the Federal Bank. The account was previously frozen due to a series of suspicious transactions, which raised concerns of potential involvement in money mule activities. Justice M.A. Abdul Hakhim presided over the case, which concluded with a directive for the police to initiate an FIR against the petitioner under Section 111 of the Bharatiya Nyaya Sanhita, 2023.
The court proceedings revealed that the petitioner's bank account, which had been largely inactive since its opening in January 2023, suddenly experienced a surge in high-value transactions exceeding Rs. 50 lakhs within a brief 15-day period. The abrupt and unexplained spike, coupled with multiple law enforcement notices regarding these transactions, led to the account being flagged for suspicious activity.
Despite the petitioner's claims of being a business partner and receiving regular income from his ventures, he failed to provide any substantiating documentation. Furthermore, the court noted discrepancies in the petitioner's affidavits and highlighted the absence of regular salary deposits in his account, contradicting his assertions of legitimate business operations.
The court expressed strong disapproval of the conduct of the petitioner's legal counsel, who attested to the affidavits despite apparent falsehoods, emphasizing the ethical duty of advocates to uphold the integrity of the judicial process. However, considering the young age of both the petitioner and his counsel, the court refrained from taking punitive actions against them.
Citing previous judgments, the court maintained its discretion to deny relief under Article 226 of the Constitution of India when there are reasonable grounds to suspect the facilitation of cyber fraud. Consequently, the court not only dismissed the petition but also instructed the police to register a crime against Safwan Muhamed Sherif under the relevant provisions of the Bharatiya Nyaya Sanhita, 2023, to further investigate the matter.
This ruling underscores the judiciary's commitment to maintaining the sanctity of financial systems and deterring illicit activities through stringent legal measures.
Bottom Line :
A petitioner using his bank account for suspicious transactions and providing false information in court affidavits can be subject to police investigation under Section 111 of the Bharatiya Nyaya Sanhita, 2023. Advocates have a duty to ensure that their clients do not submit false statements in court.
Statutory provision(s): Bharatiya Nyaya Sanhita, 2023, Section 111
Safwan Muhamed Sherif v. Federal Bank, (Kerala) : Law Finder Doc id # 2965814
