Voices. Verdicts. Vision

Voices. Verdicts. Vision

Delhi High Court Quashes FIR in ₹1.93 Crore Cheating Case, Terms It Civil Dispute in Garb of Criminal Offence

Yogesh Sharma v State of Delhi [Decided on 13.08.2025]

FIR Quashed CivilDispute

The Delhi High Court quashed an FIR registered against the accused and others in connection with an alleged cheating case involving nearly ₹1.93 crore, observing that the dispute was essentially civil in nature but was wrongly given the colour of a criminal offence.

Justice Arun Monga, while delivering the judgment on an application filed in the already disposed of bail proceedings, held that the allegations lacked the essential ingredients of cheating under Section 420 IPC. The Court found that what was essentially a failed financial and shareholding transaction had been camouflaged into a criminal case.

The FIR, lodged in December 2019 at Rani Bagh police station, alleged that the accused and his family induced the complainants to invest ₹1.5 crore in stone mines, promising 24% annual returns and additional profits, followed by a further ₹43.66 lakh towards shares in the family’s companies. The complainants alleged that the family of accused failed to repay the money or issue proper share certificates.

Rejecting this, the defence argued that shares were duly transferred and the dispute stemmed from complainants later seeking money back instead of accepting the shares. The Court noted that despite nearly six years of investigation, no charge sheet had been filed, terming the delay a violation of the accused’s right to a speedy trial.

Quashing FIR under Sections 420/34 IPC, the Court described the case as an “abuse of the process of law” and directed that the complainants may pursue remedies under civil law. Consequently, the application seeking release of ₹1.5 crore deposited by the accused during bail proceedings was also dismissed, though with liberty to seek recovery through proper civil proceedings .

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