Point of Law : Section 66 D of the Information Technology Act i.e. offence of, "cheating by personation by using computer resource" and ingredients of Section 420 of the IPC i.e. "cheating and dishonestly inducing delivery of the property" are distinct.

JUDGMENT :

1. The applicants are seeking their enlargement on bail having been arrested by the respondents in connection with an Enforcement Case Information Report bearing No. ECIR/PJZO/03/22 dated 28.1.2022.

2. Heard Mr. Atmaram Nadkarni, learned Senior Counsel along with Mr. D. Lawande, Advocate and Shri P. Faldessai, learned Assistant Solicitor General with Mr. P. Karpe, Special Public Prosecutor for the respondent.

3. Briefly stated prosecution case is as under:-

Goa Police registered an FIR bearing No. 10/2022 dated 22.1.2022 under Section 420, 408, 120-B read with Section 34 of Indian Penal Code ad Section 3 and 4 of Goa Daman and Diu Public Gambling Act 1976 and Section 66 D of the Information Technology Act, 2000 and arrested three accused namely Shashank Siddharth, Rajnish Kumar and Anup Palod. The prosecution alleged that the above named accused persons were found to be involved in serious criminal activities by using electronic devices such as laptop, mobile etc and without permission of online gaming from competent authorities, not only involved in illegal gaming activities and siphoning huge money through secret networks and thereby caused loss the exchequer of the Government. On the basis of the material and facts aforesaid crime an Enforcement Case Information Report (ECIR) bearing no.ECIR/PJZO/03/2022 was recorded on 28.1.2022 by Panaji Zonal office under the provision of Prevention of Money Laundering Act, (PMLA)2002 against the aforesaid individuals and others, as the aforesaid FIR contained schedule offence i.e Section 420 and 120-B of the IPC.

4. The statements of the accused persons in the said FIR was recorded in February 2022 after they were released from jail. While aforesaid statements, accused persons submitted that they were involved in online poker games on Apps like PP Poker; etc as a player or as an agent on behalf of various club managers namely Ramesh Rao Thotapalli(Club name: Resurge) resident of Goa; Mr. Vikram Verma (Club name Pokerfishes) resident of Mumbai, Viraj Patil resident of Mumbai, Mr. Nikhil Jain (club name Prive) resident of Delhi, Mr. Gunjan Modi(club name Mfactor) resident of Calcutta and their subsequent union head namely Mr. Ankur alias Rahul Khanna and Hardeep Singh, the applicants herein, both residents of Calcutta.

5. In the course of the investigation statement of Ramesh Thotapalli who used to run clubs namely "Resurge" under the union of applicants was recorded under Section 50 of PMLA and subsequently, his mobile phone and laptop were impounded vide order dated 17.2.2022. The data that was extracted from the impounded mobile phone and laptop revealed that applicants were operating unions namely Checkraise, Mini India, Russian Poker on PP Poker online gaming App.

6. Under each union, it was found that around 25 to 30 clubs were being operated by different individuals including Ramesh Thotapalli. Through these clubs, individual players were invited through Whatapp chat for placing illegal bets through various poker gaming Apps. The investigation revealed that bettings were placed through these Apps involving various stakes and that commissions were generated at the rate of 5% by the said club on each table running in the said clubs. The settlement of commission and the betting amount was done namely through hawala operator in cash through crypto currency with each individual player and union head by their respective club managers. That on the basis of the reliable information certain records documents related to hawala transaction, various clubs, crypto wallets and proceeds of crime secreted in the residential premises of the applicants. The competent authority conducted searches on 6.4.2022 on the residential premises of the applicants and other club managers/ hawala agents. During the search, incriminating documents/digital devices pertaining to agents, their contact details, hawala transaction crypto wallets were found from that premises and same were seized.

7. Thereafter sum