2026:CGHC:523-DB Digitally signed by NAFR ANURADHA ANURADHA TIWARI TIWARI Date:

2026.01.07

1 + 0 0 : 5 2 3 2 0 :26 HIGH COURT OF CHHATTISGARH AT BILASPUR CRMP No. 3870 of 2025

1 - Hiralal Kuldeep S/o Naansai Kuldeep Aged About 61 Years R/o A B 1639-41 Block No. 3 Kaveri Vihar N.T.P.C. Jamnipalli Police Station Darri Distt. Korba (C.G.)

2 - Rakesh Sahu, S/o Babulal Sahu, Aged About 36 Years R/o 646/3 N.T.P.C. Balagi Road Laata, Jamnipalli Police Station Darri, Distt. Korba (C.G.)

... Petitioners versus

1 - State of Chhattisgarh Through Police Station Darri, Distt. Korba (C.G.)

2 - Rajan Prasad S/o R.K. Verma Aged About 39 Years R/o B/1379 Krishna Vihar N.T.P.C. Colony Jamnipalli Police Station Darri, Distt. Ko-

rba (C.G.)

... Respondents (Cause-title taken from Case Information System)

For Petitioners : Mr. Sanjay Patel, Advocate For Respondents-State : Mr. Praveen Das, Additional Advocate General Hon'ble Shri Ramesh Sinha, Chief Justice Hon'ble Shri Arvind Kumar Verma , Judge

Order on Board

Per Ramesh Sinha , Chief Justice

06.01.2026

1. Heard Mr. Sanjay Patel, learned counsel for the petitioners as well as Mr. Praveen Das, learned Additional Advocate General, appearing on behalf of the State/respondent No.1.

2. The present petition has been filed by the petitioners with the following relief(s):-

“I. Quash the Final Report bearing No. 3/2025, dated 09.01.2025, filed under Sections 406, 420, 120B, 34 of the IPC and Section 4, 5 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, arising out of FIR bearing Crime No. 164/2023, dated 23.06.2023, registered under Sections 406, 420, 34 of IPC and Section 4, 5 of the Prize, Chit and Money Circulation Schemes (Banning)

Act, 1978.

II. Quash the order dated 24.01.2025, whereby the Learned Judicial Magistrate First Class, Korba, has taken cognizance in Criminal Case No. 141/2025 and also all further proceedings arising therefrom, in the interest of justice.

III. Pass any other appropriate order(s) or grant such further relief(s) as this Hon'ble Court may deem fit, just, and proper in the facts and circumstances of the case, in the interest of justice.”

3. Mr. Sanjay Patel, learned counsel for the petitioners submits that petitioner No.1 is a retired Engineer (Operation), SLPS, Employee No. 025539, Fuel Handling Department, Korba Super Thermal Power Corporation, Vikas Bhawan, Jamnipalli, District Korba, and has no connection with the management or control of any crypto company. Respondent No.2 lodged a written complaint at Police Station Darri, District Korba, alleging that on the basis of information provided by one Santosh Yadav and an alleged presentation by the petitioners, he invested a sum of Rs.32,99,225/- in Hyperfund with an expectation of exorbitant returns, which did not materialize, leading to registration of the FIR.

4. Mr. Patel further submits that on the basis of the said complaint, FIR bearing Crime No. 164/2023 dated 23.06.2023 was registered for offences under Sections 420, 406, 34 IPC and Sections 4 and 5 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978, pursuant to which the petitioners were arrested and later released on bail on 05.07.2023. After completion of investigation, a Final Report bearing No. 3/2025 dated 09.01.2025 was filed and cognizance was taken by the learned Chief Judicial Magistrate, Korba, on 24.01.2025, which is wholly illegal and unsustainable in law.

5. It is submitted by Mr. Patel that the petitioners are neither Directors nor Chief Directors of Hyperfund, and the allegation that Petitioner No.1 was holding such a position is patently false and unsupported by any material on record. It is contended that Hyperfund is a globally recognized fraudulent crypto-based Ponzi scheme, in respect of which proceedings including Civil Action No. 24-cv-00296 titled Securities and Exchange Commission vs. Xue Samuel Lee & Anr. are pending before the United States District Court, District of Maryland, and the petitioners themselves are victims