Disposed¶20

Shambhu Nath Karikar v. State of West Bengal and Ors.

Calcutta HC24 Feb 2026WPA/25835/2023

Case brief

AI extract

What is this about?

WPA 25835 of 2025; Shambhu Nath Karikar v. The State of West Bengal & ors.; crypto currency investment fraud; fake company; investors cheated of crores of rupees; charge sheet under Section 420 IPC; Section 3, West Bengal Protection of Interest of Depositors in Financial Establishment Act, 2013; investigation by Deputy Superintendent of Police or above; Director of Economic Offences (respondent no. 16); reinvestigation; transfer of case diary within seven days; writ petition disposed of; no costs; Suvra Ghosh, J.; Calcutta High Court.

What did the court decide?

Complaint referred to the Director, Economic Offences (16th respondent) for reinvestigation under the 2013 Act; Investigating Officer directed to make over the Case Diary and all relevant documents to the 16th respondent within seven days; no order as to costs. ¶20

Shambhu Nath Karikar Vs State of West Bengal and Ors. — Cheating and Forgery | Calcutta HC (2026)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the investigation into the alleged fraud on investors in crypto currency, in respect of which a charge sheet stands submitted under Section 420 IPC, should be conducted/reinvestigated under the West Bengal Protection of Interest of Depositors in Financial Establishment Act, 2013 through the Director of Economic Offences. +1 more

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Court's answer

It is not in dispute that the offence pertains to the West Bengal Protection of Interest of Depositors in Financial Establishment Act, 2013 besides other provisions of law.

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Ratio / Principle

The complaint lodged by the petitioner is to be sent to the Director, Economic Offences (16th respondent) for taking necessary steps for conducting reinvestigation under the 2013 Act.

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Key takeaways

The Investigating Officer is directed to make over the Case Diary along with all relevant documents pertaining to the case to the 16th respondent (Director, Economic Offences) within seven days.ratio¶19

Detailed headnote1 paragraphs

Alleged fraud on several investors who purchased crypto currency from the company of the 8th respondent; charge sheet already submitted under Section 420 IPC, but the angle of fraud and misappropriation was not dealt with by the investigating agency. Held that the offence pertains to the West Bengal Protection of Interest of Depositors in Financial Establishment Act, 2013 (under Section 3 of which no police official below Deputy Superintendent of Police rank may investigate) besides other provisions of law. Directed that the complaint be sent to the Director, Economic Offences (16th respondent) for necessary steps towards reinvestigation, and that the Investigating Officer make over the Case Diary with all relevant documents to the 16th respondent within seven days. Writ petition disposed of; no order as to costs. (Suvra Ghosh, J.)

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February 24, 2026 (17) ARDR

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WPA 25835 of 2025

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Shambhu Nath Karikar

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Vs.

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The State of West Bengal & ors.

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Adv. Niladri Sekhar Ghosh, Adv. Sourav Mondal, Adv. Labani Sikdar, Adv. Rony Mondal, Adv. Souvik Dey, Adv. Debarghyo Sil,

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…for the petitioners.

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Sr. Adv. Tapan Kumar Mukherjee, Adv. Sangeeta Roy, Adv. Somnath Narkar,

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…for the State.

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Affidavit of service filed by the petitioner is taken

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on record.

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None appears for the respondent nos. 16 and 17 despite service.

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The issue involves alleged fraud upon several investors who invested in the company of the 8^th respondent which dealt with exchange of crypto currency. Several innocent members of the public including the petitioner fell into the trap of respondent nos. 6 to 8 and purchased crypto currency to the tune of crores of rupees. The said amount was locked and the company was found to be fake. Pursuant to the complaint lodged by the petitioner, investigation was initiated by the jurisdictional police and charge sheet has been submitted under Section 420 of the Indian Penal Code. The angle of fraud and misappropriation of huge amount of money have not been dealt with by the investigating agency.

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Learned counsels for the petitioner as well as the State refer to Section 3 of the West Bengal Protection of Interest of Depositors in Financial Establishment Act, 2013 which envisages that no police official below the rank of Deputy Superintendent of Police or equivalent having jurisdiction, shall investigate an offence under this Act.

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Learned counsel for the State submits that the issue be sent to the Director of Economic Offences, Government of West Bengal who shall take appropriate steps under the 2013 Act for conducting a fair, proper and unbiased investigation of the allegations made by the petitioner.

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It is not in dispute that the offence pertains to 2013 Act besides other provisions of law.

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In view of the above, the complaint lodged by the petitioner be sent to the Director, Economic Offences, being the 16^th respondent herein, for taking necessary steps for conducting reinvestigation as stated hereinabove.

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The Investigating officer is directed to make over the Case Diary along with all relevant documents pertaining to the case to the 16^th respondent within seven days from date.

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With the above direction the writ petition is disposed

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of.

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There shall however, be no order as to costs.

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Since no affidavit is invited, the allegations contained in the petition are deemed not to have been admitted.

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Urgent certified website copy of this order, if applied for, be supplied to the parties upon compliance with all requisite formalities.

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