Srinagar, July 21, 2025 – The High Court of Jammu & Kashmir and Ladakh at Srinagar, presided over by Justice Sanjay Dhar, has rejected bail applications for four individuals implicated in a ₹53 crore financial fraud case. The accused—Shahnawaz Ahmad Shah, Rumaisa Jan, Aamir Bashir Magray, and Ghulam Nabi Shah—are alleged to have orchestrated a cyber fraud scheme through an unregistered online trading platform, deceiving numerous victims with promises of high investment returns.
The case originated from a complaint filed by Firdous Ahmad Dar at Police Station Kangan, alleging that Shahnawaz Ahmad Shah, a Probationary Officer at J&K Bank, Kangan, induced him to transfer ₹5 lakh into a fraudulent scheme. Dar provided his Aadhar, PAN, and bank account details, which Shah allegedly used for suspicious transactions, resulting in a lien on Dar’s account. The Investigating Agency uncovered transactions totaling approximately ₹53 crores across the accused’s accounts at J&K Bank, SBI, HDFC, PNB, and IndusInd Bank, with credited amounts of ₹4.15 crore to Shah, ₹22.31 crore to Jan, ₹26.43 crore to Magray, and ₹24.10 crore to Ghulam Nabi Shah.
Government Advocate Waseem Gul, representing the Union Territory and Police Station Kangan, opposed the bail, arguing that the accused were involved in a large-scale financial scam affecting thousands. Gul highlighted that the accused operated a fake online trading platform, @RSN, which lacked government registration or approval. The prosecution’s evidence includes statements from 13 witnesses confirming they were duped and significant inter-account transactions among the accused, suggesting a coordinated conspiracy.
The court found prima facie evidence of criminal breach of trust under Section 316(5) of the Bharatiya Nyaya Sanhita (BNS) against Shahnawaz Ahmad Shah, who allegedly misused his banking position. The other accused were implicated through their financial dealings, supporting charges under Section 61 BNS (criminal conspiracy).
Represented by advocates Salih Pirzada, Aamir Hamid, Areeb Kawoosa, and Gagan Oswal, the accused sought bail, claiming eligibility for default bail due to over 60 days in custody, medical issues for Shah and Rumaisa Jan, and the inapplicability of certain charges. Justice Dhar rejected these arguments, noting that Section 316(5) BNS, punishable by life imprisonment, allows detention up to 90 days before default bail applies. As the accused had been in custody for approximately 75 days, this threshold was not met. Medical claims were also dismissed, with Shah’s 2006 osteosarcoma diagnosis showing no recent deterioration and Jan’s condition deemed non-serious.
Citing Supreme Court precedent in P. Chidambaram v. Directorate of Enforcement (2020), the court underscored the gravity of economic offenses, emphasizing that the ongoing investigation—still tracing the funds’ source and identifying associates, including Shah’s brother, Owais Ahmad Shah, studying in Bangladesh—justified denying bail. The Income Tax Department has been notified, and potential charges under the Prevention of Money Laundering Act are under consideration.
The case, linked to FIR No. 28/2025 at Police Station Kangan and FIR No. 5/2025 at Cyber Police Station, Srinagar, continues to be investigated. The court’s ruling reflects the seriousness of the alleged fraud and the need to protect the integrity of the ongoing probe.
