SRINAGAR: The High Court of Jammu and Kashmir and Ladakh has rejected the pre-arrest bail application of Naresh Kumar Gulia, a former Indian Army personnel accused of masterminding a multi-crore Ponzi scheme involving fake cryptocurrency under the guise of “Emollient Coin” and “Tech Coin.”
Justice Mohd. Yousuf Wani, delivering the judgment on July 15, 2025, held that granting anticipatory bail in a case of such “heinous economic offences” would defeat the interest of justice. The court said, “It may not meet the ends of justice in case the petitioner is granted the extraordinary concession of pre-arrest bail, which is aimed at protecting only those who genuinely apprehend arrest on false and frivolous grounds.”
The case stems from an FIR registered in Leh in March 2020 after hundreds of local investors complained they were cheated by agents of Emollient Coin Ltd, who promised to double their investments within a fixed “locking period.” An inquiry by the District Magistrate revealed that over 2,500 people in Leh alone had invested more than Rs 7.34 crore in the scheme. The Enforcement Directorate later pegged the overall proceeds of crime at Rs 16.81 crore, tracing money trails through bank accounts, seized documents, and statements of co-accused.
Gulia, who took voluntary retirement from the Army in 2016, claimed he was falsely implicated. Through his counsel, he argued he was merely a promoter employed for his administrative experience, had himself invested Rs 10 lakh from his retirement funds, and was also a victim of the fraud. He contended that the main accused, Ajay Kumar Choudhary and A.R. Mir, were already granted bail and sought parity, stating that all evidence was documentary in nature and his custodial interrogation was unnecessary.
His counsel told the court, “The petitioner is a law-abiding citizen with deep roots in society. He has never been involved in any criminal activity and is willing to surrender his passport and cooperate fully with the investigation.”
The Enforcement Directorate, however, strongly opposed the bail, calling Gulia the “actual mastermind” of the fraudulent crypto scheme. It alleged that he was instrumental in designing and managing fake mobile applications and luring investors in India as well as abroad, including Vietnam, Cambodia, and the Philippines.
Government counsel Vishal Sharma submitted, “The petitioner absconded, evaded multiple summons, and was last traced to Thailand. He holds proceeds of crime to the tune of Rs 6.05 crore, including Rs 57 lakh transferred directly to his nominated accounts. More than 2,000 people in Leh alone have been duped. His custodial presence is imperative for a logical and result-oriented investigation.”
The court noted that searches at multiple locations in Jammu, Leh, and Sonipat led to the seizure of Rs 91 lakh in cash and incriminating documents. Co-accused admitted handing over cash to Gulia, strengthening the ED’s case.
Justice Wani underscored the stringent conditions under Section 45 of the Prevention of Money Laundering Act (PMLA), which restrict bail in money laundering cases. The court observed that the petitioner had failed to demonstrate that he was not guilty or unlikely to commit further offences. “The liberty of an individual must be balanced against the larger interest of society and the State,” the judge remarked, emphasising that economic offences involving large-scale cheating warranted a cautious approach.
Citing Supreme Court precedents on anticipatory bail, the court said the nature and gravity of accusations, risk of flight, potential to tamper with evidence, and the scale of public harm were all factors that weighed heavily against Gulia’s plea.
The order concluded, “The petitioner is alleged to have cheated thousands of people by luring them into a bogus crypto Ponzi scheme, siphoning their hard-earned money under false promises of high returns. His presence in custody appears imperative in the facts and circumstances of the case for a logical and result-oriented investigation. The application is dismissed.”
With this ruling, Gulia faces imminent arrest as the Enforcement Directorate continues its probe into what is described as one of the largest fake crypto scams in Ladakh and Jammu & Kashmir, impacting thousands of unsuspecting investors.
