Rs 26 crore payout to realtor for one bounced cheque

Mumbai: A magistrate court in Ulhasnagar has awarded a compensation of Rs 26 crore to a developer in a case involving a bounced cheque. The court has also convicted and sentenced six partners of a real estate firm to one-year imprisonment in the case. The prosecution’s case was based on a complaint filed by Gope Madhavdas Rochlani, of the Madhav Construction Company at Kalyan. In his complaint, Rochlani alleged that the respondents had entered into an agreement with him on May 15, 2006, to grant development rights of 60 acres of land for an amount of  Rs 85 crore.

According to Rochlani, he made a payment of Rs 8.5 crore to the respondents. However, the respondents cancelled the deal and agreed to return the money along with profit, compensation and escalating cost of the land. They even issued two cheques totalling Rs 16.50 crore in August and October 2008, that bounced, following which he approached the court.

The partners of Vinayak Enterprises refuted Rochlani’s allegations and contested the case. But First Class Judicial Magistrate, Ulhasnagar, R D Chougale, observed that the complainant has been deprived of the said amount of the disputed cheques. The judge held that considering the rate of interest given by a nationalised bank on fixed deposits, it would be just and reasonable to grant a compensation of Rs 26,12,50,500 to the complainant.

The magistrate than directed the seven accused, the firm Vinayak Enterprises and its six partners to pay Rs 3,73,21,500 each to the complainant. The magistrate also made it clear that in case of non-payment of the compensation amount, the respondents would be required to spend an additional three-months in prison. Though the convicts requested for leniency the magistrate refused to show them any leniency.