Senior Gujarat police official sent on remand for extorting bitcoins

An Ahmedabad sessions court on Tuesday sent the Amreli Superintendent of Police (SP) on seven days’ police remand.

Indian Police Services officer Jagdish Patel who was arrested for his alleged role in extorting bitcoins and cash from a builder will remain in police custody until May 1.

Patel was arrested by the Gujarat CID-Crime on Monday after he was questioned throughout the day at the department's office in Gandhinagar.

Sleuths investigating the case had sought 14-days police remand for the accused saying that his role in the case of kidnapping, extortion, and illegal detention of a realtor from Surat, Shailesh Bhatt, was revealed by policemen arrested in the case. However, the court of sessions judge N C Rawal allowed police remand for a week.

The CID alleged that Inspector Anant Patel, arrested earlier in the case, had said that the SP had given him Rs 40 lakh to distribute among other policemen, also arrested in the case, for legal expenses.

On April 8, the CID-Crime had registered a case against Anant Patel and others for allegedly kidnapping Bhatt and extorting bitcoins, a popular cryptocurrency, and demanding Rs 32 crore from him.

Bhatt had also alleged that Anant Patel kidnapped him and extorted bitcoins at the behest of the Amreli SP.

Police had earlier said they were verifying Bhatt's claim of digitally transferring 200 bitcoins to Anant Patel.

Bitcoin is the most valuable cryptocurrency in use and the exchange rate of one bitcoin is currently $9,348 or Rs 6.24 lakh.

Bitcoin is a type of digital money that is issued and normally controlled by its developers and used and accepted among the members of the virtual community.

The Indian government has repeatedly said it does not recognise bitcoin or any other cryptocurrency as legal tender in India.

Reserve Bank of Indian recently barred all entities functioning under it to not deal with companies trading in cryptocurrencies.