Karnataka HC allows CID to probe digital gold startup JAR
The Karnataka High Court has allowed the CID to investigate JAR Gold Retail and its director after dismissing their pleas to quash an FIR under the Banning of Unregulated Deposit Schemes (BUDS) Act.
The FIR, filed in January, accuses the company of running unregulated deposit schemes through its app.
How JAR Gold works and the ongoing investigation
JAR Gold, a Bengaluru startup launched in 2021, lets users invest in digital gold starting at just ₹10 via UPI.
Despite claiming over 3 crore users and a ₹4,000 crore turnover, it operates without RBI or SEBI licenses.
After RBI flagged issues like questionable offers and refer-and-earn schemes, the CID seized devices and froze accounts—finding over 1,500kg of gold and 2,500kg of silver stored away.
Several investors have complained about missing funds, so the investigation is ongoing and raising big questions about how safe digital gold really is.