'Glaring Acts': Karnataka High Court Refuses To Quash Case Against Education App Co-Founder For 'Defrauding' Public Of ₹200 Crore

The Karnataka High Court on Thursday[July 9] refused to quash cheating case against one of the founders of online education platform 'V-Care Online Learning App' booked over allegations of defrauding public of Rs. 200 crore over assurance of providing online education, noting that the chargesheet revealed 'glaring acts of cheating'. [2026 LiveLaw (Kar) 242]

A single-judge bench of Justice M.Nagaprasanna dismissed the petition filed by R. Venkatesh, arraigned as Accused No. 6, who had approached the Court seeking quashing of the entire criminal proceedings arising from the 2022 FIR.

It is alleged that Film producer N Veerendra Babu and the petitioner R Venkatesh along with five other accused, had established a firm called M/s. Aryan Infotech Pvt. Ltd., which operated the VCARE ONLINE LEARNING APP.

According to the prosecution, the accused persons collected substantial amounts from the public across Karnataka, assuring that the students would be provided quality online education. The total amount collected is alleged to run into Rs. 200 crores. According to the State, neither were the promised classes conducted nor did the students receive any education or benefits from the amounts deposited. The State has alleged that the accused misappropriated the funds collected from the public for their personal use.

Upon reviewing the summary of the chargesheet, the Court noted that the allegations revealed the accused was a key individual who established the firm alongside the other accused.

“…The summary of chargesheet depicts glaring acts of cheating on behalf of the petitioner, who, in the garb of a learning app, is said to have cheated several persons to the tune of Rs 200 crores. Therefore, the BUDS (Banning of Unregulated Deposit Schemes Act) Act and KPIDFE (Karnataka Protection of Interest of Depositors in Financial Establishments Act) Act have been invoked in the case at hand. There can be no warrant of interference, the offences being so against the petitioner and the petitioner being the accused no.6 as also the one who has established the firm with other accused. Finding no merits in this petition, the petition stands dismissed,” the court observed.

As a consequence, the trial proceedings, currently at the stage of framing of charges, would continue before the Special Court in Bengaluru with respect to the Accused No.6 Venkatesh.

Context

Before the trial court, it has been alleged that Accused No. 1 N Veerendra Babu- a Kannada Producer and Actor- along with other accused persons including the petitioner, started multiple entities and organisations including M/s. Aryan Infotech Pvt. Ltd, VCare Online Learning APP, ANN Charitable Trust, Karnataka Rakshana Pade, VNEWS-24 Youtube Channel and Rashtriya Janahita Party.

The accused allegedly lured the public by promising them significant posts in Karnataka Rakshana Pade as well as MLA/MP election tickets through Rashtriya Janahita Party, and free education throughout Karnataka, and collected huge amounts from the victims who allegedly fell prey to the promise made.

Reportedly, the case originated from a complaint filed by Basavaraja B. Gosal of Dharwad, who alleged that the accused had cheated him and his friends to the tune of Rs. 1,80,06,000/-. The complainant stated that Babu asked the complainant and his friends to invest in his learning app and political platform, promising him elections seats in return. However, none of these promises were fulfilled as per the complainant, leading to the registration of the FIR and subsequent chargesheet.

Following completion of investigation, the police filed a chargesheet against N. Veerendra Babu, R Venkatesh and others for offences under Sections 406 (criminal breach of trust), 409 (criminal breach of trust by public servant/agent), 415 (cheating), 420 (cheating and dishonestly inducing delivery of property), 506 (criminal intimidation) read with Section 149 (unlawful assembly) of the Indian Penal Code (IPC), and Sections 21, 23, and 25 of the Banning of Unregulated Deposit Schemes (BUDS) Act.

Case Title: R. Venkatesh vs. State of Karnataka & Anr.

Case No.: Criminal Petition No. 12076 of 2023

Citation: 2026 LiveLaw (Kar) 242