HC allows cheating case against property buyer

The High Court of Karnataka has allowed a 75-year-old property owner to initiate a cheating case against the buyers of her property who allegedly refused to pay her the amount that was negotiated for. The property was registered for a lesser amount than what was mutually agreed, as is the norm with most property registrations. But in this case, the purchaser allegedly refused to pay the ‘remaining’ amount while paying her only the amount mentioned in the sale deed.

Vasundara Ramaswamy is a 75-year-old US national. She came to Bengaluru to sell her property in 2013 and entered into an agreement to sell with one N Shankar for a consideration of Rs 2 crore. However, this transaction did not fructify. Later, an agent, A Muthu, got her a deal to sell the property to one Kalpana Muthu and Bhushan Khotari for Rs 6,58,20,000. However, the sale deed for registration was prepared only for Rs 4,32,20,000.

Vasundara alleges that she was not paid the difference amount and hence she refused to give up possession of her property. She complained to the Indiranagar police that she was being forced to give up possession of the property without the balance amount being paid to her. The police did not register an FIR but gave her an ‘endorsement’ that it was a civil dispute and hence she should approach the court.

Thereupon, she approached a civil court, which refused to give an injunction against the property purchasers. Vasundara claimed that she was forcibly thrown out of the property and then approached the HC for justice.

The HC noted that the agent, Muthu, and the purchaser Kalpana Muthu were husband and wife and there was “some semblance of criminal intention on their part.” It also castigated the police for not filing an FIR. “This court is unable to understand as to how the Indiranagar police could refuse to register the complaint and issue such an endorsement.” The court said the case was unnecessarily being pursued in the civil court.

Relegating the case to the magistrate court for Vasundara “to file appropriate complaint and seek appropriate direction to the jurisdictional police for investigation and registration of the complaint for the offences alleged against the defendants”, the court also allowed Vasundara to proceed against the purchasers to recover the amount due to her.

Credits Bangalore Mirror

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