'Threat To National Security': Allahabad HC Denies Bail To Chinese National Accused Of Operating Int'l Criminal Network In India

While denying bail to a Chinese official accused of operating an international criminal network in India while overstaying his visa and engaging in various unlawful activities, the Allahabad High Court underscored the need for an international legal framework to address the criminal trials of foreign nationals engaged in business in India."International criminal networks which are managed by Chinese nationals with Indian accomplices as in the instant case significantly impact the national security...What aggravates the crime further is that many beneficiaries of the crime proceeds are foreigners living abroad who are not even amenable to Indian law and whose identities are effectively concealed," a bench of Justice Ajay Bhanot observed as it denied bail to Chinese national Ryen @ Ren Chao.The Court also observed that, given the increasing presence of foreign nationals in India and the complexities arising from their criminal trials, there is a need for a global legal framework to handle such cases fairly and efficiently. “Before parting, this Court would like to make some observations. The presence of foreign nationals in India as travellers or traders or otherwise is an extant reality. It is true for other countries as well. Legal issues like criminal trials of foreign nationals though arising in domestic jurisdiction of one country have international ramifications. Criminal trial proceedings in the domestic courts of one country can get linked to the legal system and the Government of another country. There is a need for an international framework of laws which is created by consensus among the comity of nations in order to deal with such issues in a fair, transparent and just manner,” the Court said as it urged members of the comity of nations to address the issue. In his 33-page order, the judge highlighted the challenges faced by Indian judicial authorities in prosecuting foreign nationals, citing jurisdictional issues and the difficulty of ensuring their presence during legal proceedings. Underscoring that upholding the Indian Constitution and the rule of law is paramount, the Court said that to this end, foreign businesses and individuals must abide by Indian laws and submit to Indian court jurisdiction. Further, the court also warned that allowing foreign nationals immunity would erode India's sovereignty and constitutional framework. “The memories of foreign entities acting against Indian interests without fear of Indian law are too vivid to be recalled. The exactions of foreign interests working without scruples of international law are too severe to be reprised,” the Court remarked. The case in brief The applicant-accused, booked under Sections 419, 420, 467, 468, 471, 120B, 201 IPC and Sections 14(A), 14(B), 14(C), 14 of Foreigners Act and Section 66D IT Act, has been accused of being part of a larger criminal organization and an international crime network that has been committing serious crimes in India. The applicant was not named in the FIR; however, during investigations, the police authorities unearthed several incriminatory evidence against the applicant, which, according to them, established the applicant's culpability in various offences. He allegedly entered India on a work visa for Shenzhen Luckin Electronic Technology Co. Ltd. but never worked there. Instead, as per the allegations against him, he illegally worked for a company named HTZN, which worked for extracting chips from e-waste without authorization. His visa had expired, and he resided at an address different from the one on his visa. He allegedly used HTZN as a front for unlawful activities. HTZN was linked to a network of sham companies engaged in criminal activities, including illegal chip exports, money laundering through gaming apps, and defrauding Indian investors. Allegedly, the applicant and his accomplices facilitated the illegal entry and exit of Chinese nationals, created fake identity documents, and operated a hotel as a hub for their activities. The prosecution further alleged that many financial transactions connected HTZN with other fake companies like Sudden Fix Pvt. Ltd., TD Max, and Tiashang Renjion Co. Ltd and the applicant, part of the higher management, was involved in day-to-day operations, revealing his role in an organized international crime network in India. He moved to the High Court after the trial court rejected his bail plea in November 2022. His primary case was that he was a simple workman who extracted chips in a unit set up by HTZN. Before the High Court, his counsel argued that the only offence against the applicant (without prejudice to his defence) was that of overstaying the visa, which may constitute an offence under Section 14 of the Foreigners Act, 1946. On the other hand, opposing his bail plea, Additional Solicitor General of India SP Singh, assisted by Central Government Counsel RPS...

'Threat To National Security': Allahabad HC Denies Bail To Chinese National Accused Of Operating Int'l Criminal Network In India

Sparsh Upadhyay

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