Criminal liability for cheating requires proof of dishonest intent from inception, distinguishing breach of contract from criminal offence.

ORDER :

1. These Criminal Petitions are filed under Section 528 of Bharatiya Nagarik Suraksha Sanhita, 2023 (for short ‘ BNSS ’) (previously Section 482 of Cr.P.C.) by the petitioners-accused Nos.1 to 5, seeking to quash the proceedings against them in C.C.No.185 of 2024 pending on the file of the learned Principal Junior Civil Judge-cum-Judicial Magistrate of First Class at Medak, registered for the offences under Sections 420 and 504 r/w. 34 of the Indian Penal Code (for short ‘ IPC ’).

2. Since all the three criminal petitions are arising out of C.C.No.185 of 2024, they are heard together and disposed of by way of this common order.

3. Heard Mr. Avinash Desai, learned Senior Counsel representing Mr. Vimal Varma Vasireddy, learned counsel for the petitioners in Crl.P.Nos.13763 and 13740 of 2024 and Mr. Appasani Ram Dheeraj, learned counsel for the petitioner in Crl.P.No.13735 of 2024; Mr. P.Raja Sripathi Rao, learned Senior Counsel representing Mr. Ramavaram Chandrashekar Reddy, learned counsel for respondent No.2-de facto complainant in Crl.P.Nos.13763 and 13740 of 2024 and Mr. L.Preetham Reddy, learned counsel for respondent No.2-de facto complainant in Crl.P.No.13735 of 2024; and Mr. M.Ramachandra Reddy, learned Additional Public Prosecutor appearing for respondent No.1-State.

4. The facts of the case:

4.1. The de facto complainant is engaged in real estate business and is the Managing Partner of Ira Infrastructure and Developers Company.

4.2. The de facto complainant, petitioners-accused Nos.1 to 5 and M/s. Yellow Stone Estates Private Limited and 15 others are the owners and possessors of land admeasuring Ac.52.08 guntas in Sy.Nos.209, 210, 211, 231, 233, 234, 235, 236, 237, 238, 239, 240, 241, 242 and 243 of Kallakal Village, Manoharabad Mandal, Medak District. They have jointly obtained permission from HMDA and developed a layout in the name of ‘Green Hub’.

4.3. Thereafter, a Partition Deed bearing document No.672 of 2022, dated 12.12.2022 was entered into by the 19 partners, in which, M/s. Prathipati Estates Private Limited represented by its authorized signatory petitioner-accused No.4, M/s. Yellow Stone Estates Private Limited represented by its authorized signatory petitioner-accused No.5 and petitioner-accused No.3, were allotted 17,765 square yards in Plot Nos.1, 83, 84, 85 and 104 in Sy.Nos.209/P, 210/P, 211/P, 231/P, 233/P, 234/P, 235/P, 236/P, 237/P, 238/P, 239/P, 240/P, 241/P, 242/P and 243/P situated at Kallakal Village, Manoharabad Mandal, Medak District. The petitioners-accused Nos.1 and 2 are the Directors of M/s. Yellow Stone Estates Private Limited and M/s. Prathipati Estates Private Limited respectively and the petitioners-accused Nos.4 and 5 are their representatives.

4.4. The petitioners-accused Nos.1 to 5 agreed to sell their entire share of 17,765 square yards to the de facto complainant for a sale consideration of Rs.19,49,00,000/-. Accordingly, the de facto complainant’s Company has entered into a Memorandum of Understanding, dated 08.02.2023 with M/s. Prathipati Estates Private Limited represented by its authorized signatory petitioner-accused No.4, M/s. Yellow Stone Estates Private Limited represented by its authorized signatory petitioner-accused No.5 and petitioner-accused No.3 (hereinafter referred to as ‘First Party’), for the said extent, in the presence of elders.

4.5. As per the terms of the MOU, upon payment of the amount in five tranches, within (60) days, with a grace period of (15) days from the date of MOU, the plots of equal value shall be registered in favour of the de facto complainant. Additionally, it was also confirmed that amount of Rs.19,49,00,000/- was exclud