HYDERABAD: Former BRS MLA Panjugula Rohith Reddy, alias Pilot Rohith Reddy, was on Saturday convicted in a Rs 34.23 lakh cheque-bounce case dating back to 2014-15. The I Judicial Magistrate of First Class issued a non-bailable warrant after he failed to appear for the pronouncement of the judgment.
According to the complaint filed by M/s Intellidecs Pvt Ltd, represented by its director, Pinnapareddy Jaya Aditya Reddy, the company had appointed Rohith Reddy as one of its directors to help expand its business.
However, the company alleged that instead of developing its business, Rohith Reddy diverted the firm’s resources for his personal benefit without the management’s knowledge. He allegedly participated in tender works in Jammu as a GPA holder of TA Infra, actions the company claimed were against its interests.
Rohith agreed to pay Rs 34 lakh and executed MoU in 2014
The complainant alleged that Rohith Reddy travelled to Jammu and other places at the company’s expense in the name of securing business. It further alleged that, with a mala fide intention to deceive the company, he used office resources for personal benefit and caused substantial losses to the firm.
After the alleged irregularities came to light, the company questioned Rohith Reddy about them. According to the complaint, he agreed to forgo his advisory fees and resigned as a director on February 7, 2014.
The parties subsequently agreed to settle the claim. Rohith Reddy agreed to pay Rs 34.23 lakh and executed an MoU in August 2014. He then issued a cheque for Rs 34.23 lakh in September 2014 towards discharge of the liability and also executed a promissory note.
When the cheque was presented for encashment, it was dishonoured with the endorsement “Funds Insufficient”. At the accused’s request, the cheque was presented again four days later, but was returned for the same reason.
The company subsequently issued a legal notice to Rohith Reddy in January 2015. However, the notice was returned with the endorsement “refused”. The company then filed a complaint against him in 2015.
After hearing the submissions of both parties, the court found Rohith Reddy guilty and held that the provisions of Section 138 read with Section 142 of the Negotiable Instruments Act were applicable. The court noted that under Section 138 of the Act, a fine may extend to twice the cheque amount. Since the cheque was for Rs 34.23 lakh, the court said it could impose a fine of up to Rs 68.46 lakh.
“As the accused is not present at the time of pronouncement of judgment, hence, a non-bailable warrant is issued against him. The plea of guilty on conviction shall be heard at the time of production of the accused,” the court said.
