Kerala HC Orders Transfer Of Rs 200 Crore From Frozen Highrich Accounts To Treasury Deposits

Kochi, Kerala: Kerala High Court has ordered the transfer of over Rs 200 crore, frozen from Highrich Online Shoppe’s bank accounts under the BUDS Act, to an interest bearing treasury deposit within two weeks. The order was issued in a criminal appeal filed by Highrich Online Shoppe and its directors, Kollat Dasan Prathapan and Kattukaran Sreedharan Sreena, who had challenged the Designated Court’s decision confirming the attachment of funds.

The state government had recently rejected multi-level marketing company Highrich’s Rs 15 crore settlement offer. Justice  Gopinath during the hearing directed the transfer of the money – arguably over Rs 00 crore to a treasury deposit for the benefit of depositors, while asking the Competent Authority under the BUDS Act to execute the transfer and inform the court of the deposit details and applicable interest rate.

Read Also: “Jai Highrich”: How Highrich Members Are Responding To The Latest Developments

However, the court also permitted the company and its directors to have a settlement with the depositors in the interim. It further listed the matter for August 13.

According to Director General of Prosecution (DGP) Adv Shaji, the government had no opposition to Highrich settling directly with the depositors.  “The government cannot be a party to that. We can only go by the BUDS Act, which has specific steps to disburse the money to the victims,” Onmanorama qouted Shaji.

Read Also: Highrich Controversy In Kerala: All You Need To Know

What Is Highich contoversy?

The online Shoppe Pvt Ltd, based in Thrissur had allegedly illegally collected around Rs 1,500 crore by selling digital memberships, cryptocurrency (HRCC), and grocery plans among others, and the money collected was partly  redistributed as rewards to members of the scheme.

On complaints, the ED initiated the investigation against the company and its directors on charge of cheating.. The probe agency accused the founders, K. D. Prathapan and Sreena Prathapan, of running a Ponzi‑style MLM scheme: earlier investors were paid returns from new investors.

It then froze assets worth over Rs 260 crore and seized properties, including cash, and bank deposits, and filed a chargesheet identifying 37 accused and pegged the total value of the scam at Rs 1,651.65 crore.