SC sets aside Karnataka HC orders on quashing proceedings related to bogus sale of sites to NRIs

New Delhi: The Supreme Court has set aside the Karnataka High Court's orders quashing the criminal proceedings initiated against those who defrauded NRIs by indulging in fraudulent sale of plots witn bogus katha numbers in the state.

A bench of Justices Bela M Trivedi and Satish Chandra Sharma pointed out the High Court should be very slow in exercising the powers under Section 482 of CrPC when the accused are involved in very serious cases of fraud and forgery affecting large group of people.

In the matter, out of 15 complaints, chargesheets were filed in about 13 complaints against the concerned accused for the offences punishable under various provisions of IPC including 465, 468, 471, 420, 506 read with 149 etc.

Dealing with the appeals by the Karnataka government and the complainants, the bench noted, it appears that the High Court, without giving any opportunity of hearing to the concerned complainants and without taking into consideration the fact that the charge sheets were already filed in most of the cases had allowed the said petitions in a very cryptic and cursory manner without assigning any reasons to quash the proceedings.

The court rejected the accused's contention that in many cases, the complainants have not challenged the order as they had settled the matter.

"We are not impressed by such submission. In our opinion, the High Court could not have and should not have allowed the petitions of the respondents, when there were serious allegations of fraud, forgery, trespass and criminal conspiracy and when the charge sheets were filed in most of the cases, and that too, without granting any opportunity of hearing to the concerned complainants, who were allegedly defrauded by the respondents - accused," the bench said.

The court set aside the High Court's orders of 2016 and 2017 quashing the proceedings and discharging the accused respectively. The court restored all the cases on the files of the concerned trial court, Hosakote.

According to complaints, accused Joseph Chacko and others allegedly induced the NRIs by projecting that the layouts were being developed at par with the global standards with all necessary infrastructures and amenities. 

Believing their words, the complainants had entered into the sale agreements with Chacko. The sites were sold to them as converted lands with house list Khatas, promising several common infrastructures and facilities in the Townships like well laid roads, common community area, recreational facilities swimming pool etc.

When Chacko failed to start any development activities for considerable time, on enquiry, the appellants - complainants came to know that the sale deeds executed by him in respect of the plots in question were having bogus katha numbers.