Sister files case over financial dispute, court rejects anticipatory bail

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The Sessions Court, last week rejected the anticipatory bail application of a 56-year-old businessman in connection with a cheating case. The complaint against the businessman was filed by his sister over a financial dispute.

As per the order, the FIR was registered based on a complaint filed by Mahlaqa Mohammad Farooque Riyami, the own sister of businessman and builder Mohammad Kalim Shaikh. The complaint alleges that Shaikh induced her and her daughter, Huda to part of a financial deal worth Rs 70 lakh.

The deal included a the promise to execute a Sale Agreement for a flat in the building developed by Shaikh. Various agreements were executed and security cheques were issued, which were later dishonored due to insufficient funds in Shaikh's account. The complaint further alleges that the applicant was redeveloping the Mumtaj Mahal Building.

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The FIR also states that Riyami purchased Flat Number 801 in the said building from Shaikh in 2017, but the agreement for the flat is still not registered. Shaikh promised to sell Flat Number 902 on the 9th floor of the building and accepted Rs 60 lakh from her.

Subsequently, Riyami paid Rs 10 lakh by pledging her gold ornaments in a bank. However, Shaikh did not construct the 9th floor as promised. In 2020, he handed over possession of Flat Number 802 to the daughter of the first informant until the construction of the 9th floor in the building.

In November 2021, Shaikh requested the first informant to deliver possession of Flat Number 802 and issued post-dated cheques totaling Rs 70 lakh by executing an agreement. The first informant vacated the flat and handed over its possession to Shaikh, but he never built the 9th floor. Additionally, the security cheques bounced. Shaikh rented the said flat on a heavy deposit to a third person, deceiving the first informant and her daughter.

During the argument, the police advocated for Shaikh's custodial interrogation, while Advocate Zeeshan Khan, representing the sister of the businessman, intervened and argued that the elements of Section 420 of the Indian Penal Code are clearly established against the applicant. The first informant does not possess Flat Number 802 anymore as the applicant took possession and rented it out on a heavy deposit basis. The security cheques issued by the applicant bounced, involving an amount of Rs 70 lakh. To trace the money trail, the applicant's custody is deemed necessary," advocate Zeeshan said.

After hearing the matter, the court said that the custodial interrogation is needed and rejected the anticipatory application of Shaikh. "It further observed that this is a clear case of inducement made by the applicant right from the inception with dishonest intention to cheat the first informant and her daughter and fetching huge money from first informant and her daughter indicates an offence of cheating. Ultimately, it is observed that the transactions clearly indicate the ingredients of cheating and the complaint can not be treated as a civil dispute and accordingly, the Court proceeded to reject the application." the court said in its order.