Fraudulent Firm’s Fate Sealed: Court Upholds Conviction for Cheating in Investment Scam.


02 December 2024 Criminal Trial >> Criminal Law  

In a recent Criminal Revision Application, the applicant, Jayesh Natwarlal Shah, challenged the conviction and sentencing by the Trial Court and the Appeal Court. Both courts had convicted him and his partner, Nawaz Samsuddin Pathan, under Section 420 read with Section 34 of the Indian Penal Code (IPC) for cheating. They were sentenced to three months of rigorous imprisonment and a fine of Rs. 5,000 each, with a default sentence of one month.

 

 


The case revolves around the fraudulent activities of the accused, who had operated a partnership firm called Vishakha Investments & Financiers from June 1994, advertising in newspapers for public investment. The complainant, along with another victim, invested money in the firm with promises of loans but found the business shut down without returns. The complainants filed a complaint in February 1995, leading to the charge-sheet and trial.

The Trial Court and the Appeal Court found the prosecution's case to be strong, relying on oral testimony from the victims (PW-1 and PW-2) and documentary evidence, including receipts issued by the accused. The courts concluded that the accused had committed cheating under Section 420 IPC. The revision application was dismissed, and the conviction was upheld, with the bail bonds of the accused cancelled.

The High Court emphasized that no illegality or perversity was found in the lower courts' decisions, and the evidence presented was sufficient to prove the guilt of the accused. The revision application was, therefore, dismissed, and the judgment of the Sessions Court was upheld.


Section 34., Indian Penal Code - 1860  

Section 420., Indian Penal Code - 1860  

Indian Penal Code, 1860