IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 6^TH DAY OF APRIL, 2026 BEFORE THE HON'BLE MR. JUSTICE M.NAGAPRASANNA WRIT PETITION NO. 6769 OF 2026 (GM-RES)

BETWEEN:

1. MISBAH ASHRAH DIRECTOR, JAR GOLD RETAIL PRIVATE LIMITED, AGED ABOUT 32 YEARS, RESIDING AT NO.252, SHOBHA MARZARIA GRANDEUR, NO. 4/1, 4/1, BANNERGHATTA RD, BHAVANI NAGAR, BENGALURU – 560 029.

2. SANDESH NAHAR DIRECTOR, Digitally signed JAR GOLD RETAIL PRIVATE LIMITED, by SANJEEVINI J KARISHETTY AGED ABOUT 31 YEARS, Location: H igh RESIDING AT FLAT NO.203, Court of Karnataka 2^ND FLOOR, ORLANDO LAKEVIEW, JAYANAGARA EAST, BENGALURU – 560 011.

…PETITIONERS (BY SRI P.CHINNAPPA, ADVOCATE)

AND:

1. STATE OF KARNATAKA BY STATION HOUSE OFFICER KORAMANGALA POLICE STATION, BENGALURU – 560 095.

2. MR.SRIKANTEGOWDA B. (PSI)

AGED ABOUT 32 YEARS, WORKING AT, KORAMANGALA POLICE STATION, BENGALURU CITY – 560 095.

…RESPONDENTS (BY SRI B.N.JAGADEESHA, ADDL. SPP FOR R-1)

THIS WP IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA READ WITH SECTION 528 OF BNSS, 2023 PRAYING TO (A) ISSUE A WRIT OF CERTIORARI, ORDER OR DIRECTION OF APPROPRIATE NATURE QUASHING THE COMPLAINT AND F.I.R. BOTH DATED 16.01.2026 REGISTERED AS CRIME NO. 25 OF 2026 BY KORAMANGALA POLICE STATION, BENGALURU, PENDING ON THE FILE OF PRINCIPAL CITY CIVIL AND SESSIONS JUDGE (CCH-1), BENGALURU, IN SOFAR AS THE PETITIONER IS CONCERNED FOR THE ALLEGED OFFENCES UNDER SECTIONS 21(1) AND 21(2) OF THE BANNING OF UNREGULATED DEPOSIT SCHEMES ACT, 2019 (ANNEXURE A AND B); (B) CONSEQUENTLY, DECLARE THAT ALL ACTIONS TAKEN PURSUANT TO COMPLAINT AND F.I.R. BOTH DATED 16.01.2026 REGISTERED AS CRIME NO. 25 OF 2026 BY KORAMANGALA POLICE STATION, BENGALURU, ARE ILLEGAL, ARBITRARY AND VOID AB INITIO (ANNEXURE A AND B)

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER:

CORAM: HON'BLE MR. JUSTICE M.NAGAPRASANNA

ORAL ORDER

The petitioners are before this Court calling in question registration of a crime in Crime No.25 of 2026 registered for offences punishable under Section 21(1)(2) of the Banning of Unregulated Deposit Schemes Act, 2019.

2. Heard Sri P Chinnappa, learned counsel appearing for petitioners and Sri B.N.Jagadeesha, learned Additional State Public Prosecutor appearing for respondent No.1.

3. The petitioners are accused Nos. 1 and 2. This Court, qua accused Nos. 3 and 4 in the same crime, has rejected the petition in terms of its order dated 04-03-2026 in Writ Petition No.5968 of 2026. The reasons rendered to reject the crime qua accused Nos. 3 and 4 would become applicable to accused Nos. 1 and 2, the present petitioners. This Court has held as follows:

“…. …. ….

CONSIDERATION:

7. The afore-narrated facts are a matter of record.

Digital gold or business of sale of gold online is a concept that emerged in the year 2013 when Metals and Minerals Trading Corporation of India, a Government of India Company launched a business for sale of gold/digital gold to customers online. On 17-10-2013 the Securities and Exchange Board of India (‘SEBI’) clarified that the proposed business appears to be only transaction of sale and purchase of gold and does not qualify as a collective investment scheme. Long thereafter, genesis of the Company happens. In 2021 the Company launches a mobile application and a website in the name and style of ‘JAR’ which enables customers to purchase, seek delivery and sell back gold at their discretion. The purchase of gold happens to an amount beginning from ₹10/- and goes on unlimited. The business of these petitioners which began in 2021 has now flourished into a dramatical figure of ₹4,000/- crores. When the business was flourishing for 5 years, an electronic mail is communicated by the Reserve Bank of India. The mail dated 13-10-2025 reads as follows:

“Madam/Dear Sir, Please refer to the trailing mail and attachments on the captioned subject.

2. In this connection, complainant has raised a number of issues against the Jar app mentioning that it is structurally opaque, legally