Ahmedabad Court Sentences Vapi Pharma Businessman To 2 Years In Jail For ₹30-Lakh Cheque Bounce
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Summarized by AI; it may make mistakes. Check important info
An Additional Chief Judicial Magistrate court in Ahmedabad has sentenced a Vapi-based businessman to two years in prison for dishonouring three cheques worth ₹30 lakh issued in connection with an alleged pharmaceutical business investment of ₹1.18 crore.
Additional Chief Judicial Magistrate H D Patel also directed the accused to pay ₹30 lakh as compensation within 30 days. Failure to pay the compensation will attract an additional six months' imprisonment, the court ordered.
Court Finds Complainant Proved Legal Debt
The case was filed by Jagdishbhai Chandel, a resident of Raipur in Ahmedabad, against Mohanji Paliwal, a Vapi resident involved in the pharmaceutical business.
Represented by senior advocate Ayaz Sheikh, Chandel told the court that Paliwal was a close acquaintance of his brother-in-law and had approached him for investment after showing him his pharmaceutical businesses in Vapi, Umargam, Valsad, Silvassa and Daman.
The accused allegedly claimed to be a major medicine wholesaler and said he supplied medicines to large hospitals.
₹1.18 Crore Invested Between 2012 And 2017
According to the complaint, Chandel invested a total of ₹1.18 crore in instalments between 2012 and 2017 in Paliwal's business.
The accused allegedly paid the complainant a 30 per cent return on the investment for some time. However, after 2017, he allegedly stopped paying the returns and did not provide an account of the investment.
Following the dispute, Paliwal allegedly issued three cheques of ₹10 lakh each towards repayment. The cheques were subsequently deposited but returned unpaid by the bank.
Court Says Evidence Established Liability
After examining the oral and documentary evidence, the court held that the complainant had proved the facts stated in his complaint and affidavit.
The court observed that the accused had failed to rebut the evidence presented by the prosecution and that the material on record established the existence of a legally enforceable debt.
Court Warns Against Rising Economic Offences
While sentencing Paliwal, the court observed that a strict approach was necessary in cases involving economic offences.
The court noted that failure to take stringent action against such offences could have an adverse impact on society, particularly at a time when economic crimes are increasing.
The court said punishment was also necessary to set an example and deter others from committing similar offences.
