Karnataka High Court Denies Bail To Man Accused Of Being ISIS Member, Engaging In Transferring Terror Funds Via Cryptocurrency

The Karnataka High Court dismissed the bail plea of a man accused of being an ISIS member who was allegedly radicalized and recruited by his college mate, was involved in reconnaissance and arson activities with an intention to wage war against the government and engaging in transfer of terror funds through cryptocurrency.

A division bench of Justice HP Sandesh and Justice Venkatesh Naik T in its order said.

"It is also important to note that FSL report revealed the images of electric substations, boatyards, gas stations, oil tankers, shops and various locations identified during the reconnaissance by accused No.4 (appellant). Additionally, news clippings about the jeep and Innova car were found in the mobile phone of accused No.2 and arson-related images were recovered from the device and the device was also recovered from this accused and the same clearly demonstrates that this appellant actively involved in reconnaissance and arson activities in and around Mangaluru as alleged by the prosecution and the same is taken note of by the Trial Court in paragraph 35. In paragraph 57 also, the Trial Court held that thorough examination of material on record reveals that accused No.4 was a close associate of accused No.2 and 6. It is evident that accused No.2 played a pivotal role in radicalising and recruiting accused No.4 to further the agenda of the proscribed organisation, Islamic State. Both accused No.2 and accused No.4 are actively involved in conducting reconnaissance and arson activities in and around Mangaluru. Furthermore, it has been established that accused No.4 received funds through Crypto-currency from online handler affiliated with the terrorist outfit and these funds were subsequently utilized to carry out the terrorist activities".

The high court said that the trial court had held that facts when taken together provide reasonable grounds to believe that the accusations levelled against the appellant are "prima facie true".

Thus after considering the trial court order the bench said that it was not a fit case for setting aside the trial court order since it had discussed the material collected against the appellant in detail which substantiated the prima facie case against him.

The court was hearing an appeal challenging NIA court's order rejecting bail for the offences including Sections 120B(criminal conspiracy), 121A(waging or attempting to wage war or abetting waging of war against the Government of India) IPC.

The appellant, among other accused, was also booked under Sections 16(Punishment for terrorist act), 17(Punishment for raising funds for terrorist act), 18(Punishment for conspiracy, etc.), 20(Punishment for being member of terrorist gang or organisation), 38(Offence relating to membership of a terrorist organisation), 39(Offence relating to support given to a terrorist organisation) and 40(Offence of raising fund for a terrorist organisation) UAPA and provisions of Karnataka State Prevention of Destruction and Loss of Property Act.

The main allegation against the appellant/accused No.4 was that he is a member of the proscribed terrorist organization 'Islamic State' and was radicalized as well as recruited by his co-accused–accused No.2 who is his college mate. It was alleged that as part of a larger conspiracy, the appellant participated in reconnaissance and arson activities in Mangaluru with an intention to wage war against the Government of India.

He is also accused of facilitating the transfer of terror funds by sharing cryptocurrency wallet details, converting the received funds into cash and handing it over to the co-accused, his college friend. Additionally, the appellant allegedly purchased a Honda Activa for use in these activities, funded by money received through an online handler named “Colonel”.

The Investigating Officer has gathered both oral and documentary evidence to support these claims. It was also stated when the appellant was arrested on 05.01.2023 and searched, a mobile phone with a SIM card and a micro SD card was seized from him. It was noted that the appellant made a voluntary statement wherein he disclosed that he was a college mate of accused No.2 who had "radicalised and recruited" him to further the activities of the proscribed terrorist organisation, Islamic State.

It was alleged that Accused No.2 sent the appellant videos/PDFs related to ISIS. The appellant is stated to have said in the statement that he received crypto-currency into his Zebpay account from online handlers as well as into the crypto account of a college friend. Furthermore, he stated that he along with accused No.2 participated in the arson of an Innova car in Mangaluru and a paint shop in Bramhavara and conducted reconnaissance at several locations in and around Mangaluru.

The appeal was dismissed.

Case title: REESHAAN THAJUDDIN SHEIKH v/s THE NATIONAL INVESTIGATION AGENCY

CRIMINAL APPEAL NO.1548 OF 2025

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