The Karnataka High Court has directed the State government to provide substantial evidence demonstrating the involvement of LegalPay Technology Private Limited in a cyber fraud case involving a deceptive “marriage invitation” APK file circulated via WhatsApp. This directive was issued by Justice V Srishananda while reviewing petitions filed by LegalPay, which seek to annul three criminal cases initiated by Hulimavu Police in relation to the alleged cyber fraud. [Legal Pay Technology Private Limited v. State of Karnataka]
Background of the Case
The fraud reportedly involved a file masquerading as a marriage invitation, which, once clicked, led to unauthorized financial transfers to fraudsters. Three complaints have been filed, alleging that approximately ₹12.5 lakh was transferred through the LegalPay payment gateway. Complainants BK Nageshiah, Subhash Chandra Jujarth, and Vashishtha Narayan Jha claim losses of ₹7,44,989, ₹2,69,729, and ₹2,34,917, respectively, during March and April 2026.
Legal Proceedings and Arguments
Three separate First Information Reports (FIRs) were filed by the Hulimavu Police, citing Sections 66(C) and 66(D) of the Information Technology Act, 2000, and Sections 318(4) and 319(2) of the BNS, 2023, naming LegalPay as an accused. LegalPay subsequently approached the High Court to have these FIRs quashed, and the Court had previously granted interim protection to LegalPay’s officials from arrest.
During the latest hearing, Senior Advocate MS Shyamsundar, representing LegalPay, argued that criminal proceedings against the intermediary payment gateway were unjustified. He stated that if the State could prove the entire defrauded amount was credited to a LegalPay account, he would retract the petitions.
High Court’s Directives
The Court instructed the State to produce a report identifying the account holding the allegedly defrauded funds. Addressing Senior Counsel Shyamsundar, the Court remarked, “If the amount is in your account, petitions will be dismissed. If the amount is not there in the LegalPay account, you will be protected.”
Meanwhile, High Court Government Pleader (HCGP) Waheed informed the Court of the State’s consideration to transfer the investigation from Hulimavu Police to the Cyber Crime Police Station due to the nature of the allegations. However, Justice Srishananda stressed the importance of a formal transfer notification, stating, “There is no value to oral order. It must be by a notification.”
Next Steps
The Court urged the State to formally document the notification empowering the cybercrime police to investigate and file the final report if the investigation is transferred. Additionally, the Court emphasized the necessity of specifying the investigating officer’s name and designation in the charge sheet, underscoring the importance of each column’s completion.
The matter is set for further hearing on October 5.
