Karnataka Bitcoin case: 4 police officers get relief as Home Dept rejects sanction
Synopsis
Karnataka's Home Department has quietly killed the prosecution of four police officers in the high-profile Bitcoin case — by rejecting sanction requests three times. With the CID SIT forced to file a 'B' report, officers including DySP Sridhar Pujar walk free from a case that once sparked a Congress-BJP political storm over alleged illegal Bitcoin transfers worth ₹1.83 crore.
Key Takeaways
Four Karnataka police officers — DySP Sridhar Pujar and Inspectors D.M.
Prashanth Babu , Lakshmikanthaiah , and Chandradhar — have received relief in the Bitcoin case .
The Karnataka Home Department rejected prosecution sanction requests on three separate occasions , making it legally impossible to proceed.
The CID SIT dropped charges and filed a 'B' report before the court on 9 July .
The case involved alleged illegal transfer of Bitcoins worth approximately ₹1.83 crore from Robin Khandeval 's wallet during the 2020–21 investigation.
The probe had alleged collusion between cyber expert Santosh Kumar , hacker Sriki , and the four officers.
The case had previously triggered a major Congress-BJP political controversy in Karnataka .
Four Karnataka police officers, including Deputy Superintendent of Police (DySP) Sridhar Pujar, have secured relief in the high-profile Bitcoin case after the Karnataka Home Department declined to grant prosecution sanction against them on three separate occasions. With the mandatory approval absent, the Criminal Investigation Department (CID) Special Investigation Team (SIT) dropped charges and filed a 'B' report before the court, police confirmed on Thursday, 9 July.
The Four Officers Named
The officers who have received relief are DySP Sridhar Pujar and Inspectors D.M. Prashanth Babu, Lakshmikanthaiah, and Chandradhar. All four are serving police personnel, a status that made prosecution sanction from the competent authority a legal prerequisite before any court could take cognisance of the charges against them.
What the Investigation Alleged
The CID SIT had investigated the four officers for their alleged role in the 2020–21 Bitcoin case involving cyber expert Santosh Kumar, hacker Srikrishna Ramesh alias 'Sriki', and Robin Khandeval. The probe centred on the alleged illegal transfer of several lakhs worth of Bitcoins from Robin Khandeval's cryptocurrency wallet, along with alleged offences including cheating and manipulation of records.
Investigators had claimed that Santosh Kumar, allegedly in collusion with the four officers, facilitated the transfer of Bitcoins through hacker Sriki. The SIT reportedly gathered evidence relating to these alleged offences during its investigation. Notably, the case had also raised allegations that Sriki was kept in illegal custody during the probe period.
Why the Sanction Was Mandatory
Under Section 19 of the Prevention of Corruption Act, prior sanction from the competent authority is required before a court can take cognisance of offences against public servants. Prosecution of police personnel additionally requires approval under the relevant provisions of the Karnataka Police Act. The Home Department rejected three separate requests for such sanction, leaving the SIT with no legal avenue to proceed against the four officers.
Political Fallout and Background
The Bitcoin case, which came to light during the CID SIT investigation of 2020–21, had triggered a major political controversy between the Indian National Congress (Congress) and the Bharatiya Janata Party (BJP) in Karnataka. Among the flashpoints was the allegation that Bitcoins worth approximately ₹1.83 crore had been transferred during the investigation itself. The case became a recurring point of political friction between the two parties over accountability in law enforcement.
What Happens Next
With the 'B' report filed, the CID SIT has formally closed proceedings against the four officers. A 'B' report — filed when investigating agencies find insufficient evidence or face legal bars to prosecution — effectively ends the case before the court unless the complainant challenges it. The broader Bitcoin case, involving other accused, remains a matter of legal and political scrutiny in Karnataka.
Point of View
It raises uncomfortable questions about where the decision was made and why. The Congress-BJP battle over this case was loud; the silence around the sanction denials is louder. Karnataka's voters and the accused in the broader Bitcoin case — still before the courts — deserve a clearer public accounting of the Home Department's reasoning.
NationPress
9 Jul 2026
Frequently Asked Questions
Why did the four Karnataka police officers get relief in the Bitcoin case?
The four officers received relief because the Karnataka Home Department declined to grant prosecution sanction against them on three separate occasions. Under Section 19 of the Prevention of Corruption Act and the Karnataka Police Act, such sanction is mandatory before a court can take cognisance of charges against serving public servants, including police officers.
What is a 'B' report in a criminal case?
A 'B' report is filed by an investigating agency before a court when it cannot proceed with prosecution — either due to insufficient evidence or a legal bar such as the absence of mandatory prosecution sanction. In this case, the CID SIT filed a 'B' report after the Home Department refused sanction, formally closing proceedings against the four officers.
What was the Karnataka Bitcoin case about?
The Karnataka Bitcoin case, investigated by the CID SIT in 2020–21, centred on the alleged illegal transfer of Bitcoins worth approximately ₹1.83 crore from Robin Khandeval's cryptocurrency wallet. It also involved allegations of cheating, manipulation of records, and the alleged illegal custody of hacker Srikrishna Ramesh alias 'Sriki'. The case sparked a major political controversy between the Congress and BJP in Karnataka.
Who are the four police officers named in the Bitcoin case?
The four officers are DySP Sridhar Pujar and Inspectors D.M. Prashanth Babu, Lakshmikanthaiah, and Chandradhar. They were investigated for allegedly facilitating the transfer of Bitcoins in collusion with cyber expert Santosh Kumar and hacker Sriki.
Does the 'B' report close the Bitcoin case entirely?
The 'B' report closes proceedings specifically against the four police officers. The broader Bitcoin case, involving other accused such as hacker Sriki and cyber expert Santosh Kumar, remains a separate matter before the courts and is not affected by this development.
