Digital Gold Platform Cannot Escape Law Merely by ‘Cosmetic Garb’ of Transactions, FIR Against JAR App Not Quashed: Karnataka High Court

The Karnataka High Court has refused to quash the FIR registered against the online gold platform Jar Gold Retail Private Limited and its Director Nishchay Babu Arkalgud. The FIR was registered for offences under Sections 21(1) and 21(2) of the Banning of Unregulated Deposit Schemes Act, 2019 (BUDS Act). The court emphasized that the economic substance of a transaction matters more than the “cosmetic garb” in which it is presented.…