HYDERABAD: Justice K Surender of the Telangana High Court on Thursday quashed a criminal case on the file of the XII Additional Chief Metropolitan Magistrate in Hyderabad against jeweller Sukesh Gupta and his three partners.
SREI Equipment Finance Limited’s associate vice-president E Venugopal had lodged a complaint with the CCS, Hyderabad, stating that Gupta and his partners had taken a loan of Rs 110 crore from the company by mortgaging two immovable assets — 8 acres of land in Survey No 78, Hafeezpet, Serilingampally and a property measuring 28,106 sq yd at King Koti.
As per the complaint before the magistrate, Gupta and his partners failed to repay the loan, resulting in proceedings under the SARFAESI Act being initiated and the first property being sold for Rs 102.60 crore. Gupta and his partners still owed SREI Rs 58.90 crore, including Rs 24.81 crore in OD and penalties.
Approaching the High Court, counsel for Gupta and his partners acknowledged the transactions and claimed that the matter was merely a civil issue that must be resolved by the civil court. No allegations of fraud or illegal appropriation have been made, counsel said, adding that the MoU for settlement, which was signed by the petitioners and the de facto complainant on September 7, 2020, was not taken into account by the investigation officer (IO).
Counsel added that three cheques were sent to SREI for Rs 42.28 crore but the complaint did not mention them.Accepting the argument, the judge accepted the quash petition filed by Gupta and his partners.