The Gujarat High Court on Monday sought details on regulations around crowdfunding as it heard a petition moved by the Trinamool Congress national spokesperson and Rajya Sabha MP Saket Gokhale. The Trinamool leader, in his petition, is seeking quashing of an FIR that has accused him of misusing funds that he allegedly amassed by way of crowdfunding.
He has also sought quashing of subsequent criminal proceedings — a related chargesheet, and an order of a trial court that refused to discharge him from the offences.
The FIR, lodged by the cyber crime police station in 2022, also forms the basis of the Prevention of Money Laundering Act (PMLA) proceedings against him, as per officials. The Enforcement Directorate investigated the money trail of nearly Rs 1.07 crore in Gokhale’s accounts, of which around Rs 76 lakh was allegedly received through online crowdfunding campaigns and Rs 23 lakh via cash transfers, officials added.
Gokhale is facing charges under sections 406 (criminal breach of trust), 420 (cheating), 465, 468 (forgery) and 471 (using forged document) of Indian Penal Code as well as under sections 66C (punishment for identity theft) and 66D (cheat by personation) of IT Act. Following the FIR, Gokhale was arrested by the Enforcement Directorate on January 25, 2023.
Arguing before the court of Justice HD Suthar, Gokhale submitted that the charges as alleged are not made out and it cannot be said that he cheated people. It was also pointed out that crowdfunding by individuals are at present unregulated in the country, although crowdfunding by NGOs are regulated to an extent. Noting that the topic of crowdfunding is “new” and “interesting” and requires some study, Justice Suthar also sought the assistance from the prosecution as well as Gokhale’s counsel in this regard.
The matter has now been kept for final hearing on May 1.
