As per case facts, petitioners, acting as land brokers, were accused of criminal conspiracy with company directors, selling company land at a loss and misappropriating funds meant for alternate land ...
Crl.O.P.No.29794 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
RESERVED ON : 20.11.2025
PRONOUNCED ON : 05.01.2026
CORAM
THE HONOURABLE MR.JUSTICE M.NIRMAL KUMAR
Crl.O.P.No.29794 of 2025 and
Crl.M.P.Nos.20300 & 20301 of 2025
1.Venkatramanan
2.Kamalesh Kumar Seth ... Petitioners
Vs.
1.State Rep By
The Inspector of Police,
Central Crime Branch,
EDF-III, Team XXI,
Vepery, Chennai – 600007.
2.M/s.K.R.V. Properties Private Limited,
Authorized Signatory,
Mr.K.S.Kumar,
S/o.P.N.K.Nair,
No.1, 1
st
Floor, Bagirathiammal Street,
T.Nagar, Chennai-600017. ... Respondent
PRAYER: Criminal Original Petition is filed under Section 528 of Bharatiya
Nagarik Suraksha Sanhita, 2023, to call for the records in C.C.No.4138 of
2020 pending on the file of the Metropolitan Magistrate Exclusive Trial for
CCB and CBCID Cases, Egmore, Chennai and quash the same.
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Crl.O.P.No.29794 of 2025
For Petitioners: Mr.R.Balachandran
For R1 : Mr.Leonard Arul Joseph Selvam,
Additional Public Prosecutor
For R2 : Mr.A.Kripakaran
ORDER
The petitioners/A1 & A2 in C.C.No.4138 of 2020 facing trial for offence
under Sections 406, 408, 420 & 506(i) r/w 120B IPC before the learned
Metropolitan Magistrate exclusive Trial for CCB and CBCID Cases, Egmore,
have filed this Quash Petition.
2.Case of the prosecution is that the 2
nd
respondent authorised by
Mr.Dilip Vellodi, Director of M/s.K.R.V Properties Private Limited, lodged a
compliant stating that M/s.K.R.V Properties Private Limited company
registered under Registrar of Companies in the year 2006 which is involved in
construction activities for residential and commercial buildings, promoting
layouts and in the real estate business. Mr.Muthu Narayanan is the one of the
Director of the Company and Mr.Gopi @ Gopinath Sadasivam, a close relative
of said Mr.Muthu Narayanan associated with the Company for looking after
the financial aspects of the Company. The Company was in need of 20 acres
of land parcel in Perumbakkam Village near Pallikaranai and the Company
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Crl.O.P.No.29794 of 2025
authorised Mr.Muthu Narayanan and Mr.Gopi @ Gopinath Sadasivam to find
out lands and to make payments. Mr.Muthu Narayanan to identify land parcels
brought in Mr.S.Venkataramanan and Mr.Kamalesh Kumar Seth (petitioners),
land brokers to identify and procure land parcels in the said locality.
Thereafter, land to an extent of 19.575 acres extending in various survey
numbers at Perumbakkam Village procured during the period 2006 to 2010.
Out of 19.575 acres, 2.15 acres of land in survey Nos.265/3, 266/4, 297 & 298
purchased by the Company vide sale deed in document Nos.10478 of 2007,
8395 of 2007 and 4469 of 2007, totalling to a sum of Rs.3,48,34,200/- was
sold to third person. Keeping Company in dark, Mr.Muthu Narayanan and
Mr.Gopi @ Gopinath Sadasivam, entered into a criminal conspiracy with the
petitioners and sold 2.15 acres of land to one M/s.Varun Manian Reality &
Constructions Private Limited for a sum of Rs.2,57,00,000/- vide sale deed in
document No.8177 of 2011 and 1752 of 2012. Though the Company
purchased the said land of 2.15 acres for a sum of Rs.3,48,34,200/-, these
properties sold at lesser price showing it as distress sale for Rs.2,57,00,000/-,
thereby, caused wrongful loss of Rs.91,34,200/-. Apart from this transaction,
the petitioners in connivance with Mr.Muthu Narayanan and Mr.Gopi @
Gopinath Sadasivam received a sum of Rs.1,77,50,000/- and out of
Rs.2,57,00,000/-, a sum of Rs.2,54,40,000/- was re-routed to the 1
st
petitioner
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by three separate cheques bearing Nos.489635 dated 21.11.2011 for
Rs.1,60,00,000/-, cheque bearing No.489636 dated 08.12.2011 for a sum of
Rs.14,40,00,000/- and cheque bearing No.489637 dated 12.03.2012 for a sum
of Rs.80,000/- through Axis Bank, G.N.Chetty Road projecting that these
amounts would be used for procuring alternate lands in the name of Company.
But thereafter they neither purchased any land nor returned the amount,
thereby, committed misappropriation and cheating to the tune of
Rs.5,23,00,000/-. Hence, on the complaint received on 01.08.2015, FIR in
Crime No.304 of 2015 registered for offence under Sections 406, 408, 420 &
506(i) r/w 120B IPC.
3.On conclusion of investigation, it was found that Mr.Muthu
Narayanan and Mr.Gopi @ Gopinath Sadasivam informed the Directors of
M/s.K.R.V Properties Private Limited about the transactions with the
petitioners and there was no criminality in their action, hence, both of them
deleted from the case and charge sheet filed against the petitioners alone. It
was also found that Mr.Muthu Narayanan and Mr.Dilip Vellodi were Partners
in Sutherland Global Services, a Company registered in New York, USA and
there was claim and counter claim between them in USA Courts as early as
25.03.2015 and the present compliant lodged five months thereafter on
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01.08.2015. Further it was found that the petitioners having received the
money for sale of 2.15 acres to M/s.Varun Manian Realty & Constructions
Private Limited and undertook to buy alternate site, but failed, hence,
investigation proceeded and charge sheet filed against the petitioners arraying
them as A1 & A2. In the charge sheet, LW1 to LW11 listed along with
documents.
4.Learned counsel for the petitioners submitted that a reading of the
complaint and charge sheet in this case would prove that the dispute between
the petitioner and 2
nd
respondent is only civil in nature arising during business
transaction between them. In fact the 2
nd
respondent and the petitioners are
close relatives. There was misunderstanding and dispute between Mr.Muthu
Narayanan and Mr.Dilip Vellodi and case in USA Court initiated. In the
crossfire, finding petitioners are close to one of the rival party against the 2
nd
respondent, they are falsely implicated in this case. The petitioners explained
the modus of business transaction, how the properties purchased and for what
reason 2.15 acres sold, otherwise further loss would have happened, hence, to
avert and minimise the loss, the property sold to M/s.Varun Manian Realty &
Construction Private Limited, collected the money and accounted, further,
alternate site shown to the 2
nd
respondent and it was agreed to proceed with the
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alternate site. On such explanation and production of relevant documents by
the petitioners, the 2
nd
respondent agreed and compromised the issue with the
petitioners. Now, a Joint Compromise Memo dated 21.07.2025 signed by the
2
nd
respondent, Authorized Signatory and the petitioners filed before this
Court. Hence, prays for quashing the case based on the compromise.
5.Learned Additional Public Prosecutor appearing for the 1
st
respondent
Police submitted that the 2
nd
respondent, Authorized Representative of
M/s.K.R.V Properties Private Limited lodged a complaint on 01.08.2015
stating that the petitioners along with Mr.Muthunarayanan, one of the Director
of the said Company and Mr.Gopi @ Gopinath Sathasivam, a close relative of
Mr.Muthunarayanan, looking into the accounts of the Company, all joined
together during the period 2006-2010 purchased vast track of lands to the
extent of 19.575 acres in Perumbakkam Village, Pallikaranai. Though the
lands were to be purchased in one block, 2.15 acres alone purchased in a far of
place from other lands, hence, the project could not take off as planned. Later
it was agreed that this 2.15 acres to be sold and proportionate land adjacent to
existing property to be purchased. The petitioners/land brokers projected that
this 2.15 acres could not be sold immediately on the same value of purchase
and they informed that the market is on the downslide and any delay would
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Crl.O.P.No.29794 of 2025
cause further loss, hence, as a distress sale with a lesser value to the purchase,
2.15 acres sold, later doubts caused on the sale and reverse flow suspected
between the petitioners and the purchaser of 2.15 acres. The petitioners
received the sale amount, not accounted properly, failed to purchase equivalent
land adjacent to existing property, nor paid back the money, hence, a complaint
lodged by the 2
nd
respondent.
6.He further submitted that during investigation it was found Mr.Muthu
Narayanan and Mr.Gopi @ Gopinath Sadasivam (A1 & A2) informed the
Company at all stage of negotiation and thereafter decision taken to sell 2.15
acres of land. During investigation there was some dispute among the
Directors, earlier to the present complaint already there was case filed between
warring Directors in USA and some motivation prevailed between the
Directors, hence, the names of A1 and A2 in the FIR deleted. As regards the
petitioners, though they claimed that they could purchase equivalent land of
2.15 acres, neither purchased the land nor returned the amount, hence,
investigation concluded and charge sheet filed against the petitioners arraying
them as A1 & A2.
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7.He further submitted that now the petitioners and 2
nd
respondent
entered into a compromise and the 1
st
respondent Police received the
compromise deed and the copy of the same produced before this Court. He
fairly submitted that misappropriation and cheating took place in course of
business transaction. Now the 2
nd
respondent agreed for compromise, the
compromise verified and it was found to be true and genuine.
8.Considering the submissions and perusal of the materials, it is seen
that the issue between the petitioners and the 2
nd
respondent stems from a
commercial dispute arising out of business transaction between them. Now the
petitioners and 2
nd
respondent resolved the issue, Joint Compromise Memo
dated 21.07.2025 produced before this Court. To confirm the same, this Court
interacted with the signatory to the joint compromise memo namely
Mr.K.S.Kumar, Authorized Signatory/2nd respondent and Mr.Dilip Vellodi and
Mr.Kiran Thomas, Directors of M/s.K.R.V Properties Private Limited who
appeared before this Court. The Directors of M/s.K.R.V Properties Private
Limited confirmed the Joint Compromise and produced the copy of resolution
passed in the board meeting on 15.07.2025 accepting the joint compromise
memo and authorizing withdrawal of the complaint.
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9.Scanned reproduction of the Joint Memo of Compromise dated
21.07.2025 and Resolution dated 15.07.2025 are as follows:
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10.Under such circumstances, no useful purpose will be served in
keeping the proceedings pending, even though, the offences involved are not
compoundable in nature. The offence alleged is private in nature arising out of
business transaction. The Hon'ble Court in the case of Gian Singh Versus
State of Punjab reported in (2012) 10 SCC 303 had permitted quashing of
complaint of this nature.
11.In view of the above, this Court in exercise of its jurisdiction under
Section 482 Cr.P.C quashes the proceedings in C.C.No.4138 of 2020 against
the petitioners on the file of the Metropolitan Magistrate Exclusive Trial for
CCB and CBCID Cases, Egmore, Chennai.
12.Accordingly, this Criminal Original Petition stands allowed and the
terms of Joint Memo of Compromise shall form part and parcel of this Order.
Consequently, connected criminal miscellaneous petitions are closed.
05.01.2026
Speaking order/Non-speaking order
Index: Yes/No
Internet: Yes/No
vv2
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Crl.O.P.No.29794 of 2025
To
1.The Metropolitan Magistrate Exclusive Trial for CCB and CBCID Cases,
Egmore, Chennai.
2.The Inspector of Police,
Central Crime Branch,
EDF-III, Team XXI,
Vepery, Chennai – 600007.
3.The Public Prosecutor,
Madras High Court.
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M.NIRMAL KUMAR, J.
vv2
PRE-DELIVERY ORDER IN
Crl.O.P.No.29794 of 2025
05.01.2026
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