In one of India’s largest digital assets-related cases, the Special Anti-Corruption Court in Gujarat sentenced 14 people, including former members of the Bharatiya Janata Party (BJP) police officers (BJP) and several senior police officers, to lure Bitcoin from Surat businessmen in 2018 and to be sentenced to incarceration from Bitcoin.
The verdict by Ahmedabad Special Judge BB Jadav is a major blow to India’s corruption and digital asset crime. The prisoner was found guilty of criminal conspiracy, ransom invitation, illegal detention, assault and misuse of public office.
The case relates to Shailesh Babulal Bhatt, a businessman who was lured on February 11, 2018. Bhatt has invested in the now-deprecated $900 million Bitconnect scheme, recovering some of its Bitcoin funds from one of its developers, Dhaval Mavani.
When Bhatt recovered the funds, news spread, and former BJP Mla Nalin Kotadiya and police director Jagdish Patel allegedly conspired with other police officers to grab his Bitcoin.
According to the prosecutor, Bhat was lured by Anant Patel, inspector of Amreli Crime Division, and other officers, and took him to a farmhouse near Gandhinagar. There he was beaten and threatened at the muzzle, admitting he had 752 bitcoins.
He told his prisoners that 176 of those Bitcoins were with his fellow Kirit Paladya, with the rest being sold for about $5 million. Under pressure, Batt was forced to transfer Bitcoin and millions of cash.
When the authorities themselves became criminals, the court observed that it was working to “corrode both governance and the economy, like termites in society.”
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The gang initially demanded 176 Bitcoin and £320 million (approximately $3.6 million). When the cash transaction went wrong, Bat was forced to sell 34 BTC from the Paladya wallet. It was worth around $150,000 at the time.
Bhat later complained to the Indian Union Home Ministry, and a criminal investigation was launched, with 15 people arrested. The incident not only tempted, but also exposed a shocking level of abuse of power by police officers who tried to cover their trucks.
The trial was long and bitter, with 173 witnesses and nearly 300 documents. But it was also characterized by an attempt to abandon justice. At least 92 witnesses have become hostile, with some retracting previous statements.
Judge Jadhav was firm and issued perjury notices to 25 of them. “They have been deliberately revealed to help the real perpetrator. This kind of attitude of the witness is nothing but a direct interference in the legal process.” The court said.
Despite his disability, the prosecutor, led by special prosecutor Amit Patel, was convicted. “Officers used state power for personal gain and violated the trust of the people for Bitcoin.” Patel insisted.
Convicted:
- Narin KotadiyaDali’s former BJP MLA
- jug dish patelFormer Police Chief Amreli and former IPS officer
- Anant Patellocal crime branch inspector
- Kirit ParadyaBatt’s own associate, took part in the plot
- Several other police officers and accomplices
All 11 police officers were also convicted under the Anti-Corruption Act. One defendant, Jatin Dhiru Patel’s supporter, was acquitted.
The court ordered the gold ornaments seized from Jag Dish Patel to be handed over to the master of Mint in Mumbai.
Kotadiya, a former member of the Congress, went underground several months later before being arrested. His involvement, along with police officers, raises questions about the political establishment of Gujarat.
The case also exposed the dark side of Butt himself. He is accused of another case of luring two BitConnect promoters and forcing more than 2,000 BTC, 11,000 LTC and £145 million in cash.
In August 2024, he was arrested by the Indian Enforcement Bureau on charges of money laundering and lure. His case is still ongoing.
The Gujarat incident is like a crime thriller. A corrupt politician, fraudulent police officer, millions of Bitcoin, and a businessman who is a victim and accused of another crime.
