In a significant ruling, the Supreme Court has overturned the conviction of a jeweler accused of possessing stolen gold bars linked to a ₹6.7 crore financial fraud at Vijaya Bank, Nasik. The Court ruled that mere possession of the gold was insufficient to establish guilt under Section 411 of the Indian Penal Code (IPC) unless it was proven that the accused had knowledge or reason to believe the gold was stolen.
The jeweler had been convicted in connection with a complex scheme from 1997 involving fraudulent Telegraphic Transfers (TTs) deposited into a fictitious bank account under the name “M/s. Globe International.” The fraudulently acquired funds were allegedly used to buy gold, which was later traced to various individuals, including the appellant.
A CBI-led probe resulted in multiple arrests, including that of the jeweler, whose firm had allegedly received the gold bars. While the trial court convicted him, it ordered the return of the seized gold. However, the High Court upheld his conviction but directed the confiscation of the gold by the state. The Supreme Court, hearing his appeal, found no conclusive evidence linking the gold to the fraudulently obtained funds.
Citing past legal precedents, the Court emphasized that for a conviction under Section 411 IPC, the prosecution must prove not only that the accused possessed the stolen property but also that he knew it was stolen. The judges concluded that this critical link was missing in the prosecution’s case. As a result, the Court acquitted the jeweler and ordered the authorities to return all 205 seized gold bars to him.