PRIYA VASUDEVAN vs STATE OF KARNATAKA

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HC-KAR
NC: 2026:KHC:57471
CRL.P No. 851 of 2026
C/W CRL.P No. 999 of 2026
WP No. 3292 of 2026
CNR: KAHC010045212026
IN THE HIGH COURT OF KARNATAKA AT BENGALURU
TH
DATED THIS THE 13 DAY OF OCTOBER, 2026
BEFORE
THE HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE
CRIMINAL PETITION NO. 851 OF 2026
C/W
CRIMINAL PETITION NO. 999 OF 2026
WRIT PETITION NO. 3292 OF 2026 (GM-RES)
IN CRL.P No. 851/2026
BETWEEN:
1.
VASUDEVAN SATHYAMOORTHY
S/O LATE SATHYAMOORTHY,
AGED ABOUT 56 YEARS,
OLD RESIDING AT NO.32, NORRIS ROAD,
RICHMOND TOWN, BENGALURU - 560 025.
2. SATHYAMOORTHY SAI PRASAD,
S/O LATE SATHYAMOORTHY,
AGED ABOUT 51 YEARS,
HAVING OFFICE ADDRESS AT NO.38,
ULSOOR ROAD, BENGALURU - 560 042.
…PETITIONERS
(BY SRI DEEPAK BHASKAR,ADVOCATE)
AND:
1. STATE OF KARNATAKA,
DEVANAHALLI POLICE STATION,
REP. BY STATE PUBLIC PROSECUTOR,
HIGH COURT OF KARNATAKA,
BENGALURU -01,
(THROUGH DEVANAHALLI POLICE STATION ,
DEVANAHALLI SUB-DIVISION
Digitally Signed by ANANT
RAMNATH HEGDE

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HC-KAR
NC: 2026:KHC:57471
CRL.P No. 851 of 2026
C/W CRL.P No. 999 of 2026
WP No. 3292 of 2026
CNR: KAHC010045212026
HAVING ADDRESS AT DEVANAHALLI,
BANGALORE - 562110).
2. VINOD KUMAR,
S/O LATE MAMCHAND,
AGED ABOUT 50 YEARS,
OLD HAVING ADDRESS AT
1701/16, 20TH C CROSS, 7TH MAIN, C BLOCK,
SAHAKARNAGAR, BENGALURU CITY,
KARNATAKA - 560092.
3. MR PHALAKSH SHRISHAIL WALISHETTY,
S/O MR.SRISHAILAPPA,
AGED ABOUT 55 YEARS,
OLD HAVING ADDRESS AT
NO.T 1102, OZONE URBANA AVENUE,
KANNAMANGALA VILLAGE, DEVANAHALLI TALUK,
BENGALURU CITY, KARNATAKA - 562110.
…RESPONDENTS
(BY SRI NAGHARISH G S, HCGP FOR R1,
SRI SATHIES KUMAR S, ADVOCATE FOR R2 & R3,
SRI AKASH R BANTIA FOR PROPOSED R4)
THIS CRL.P IS FILED U/S.482(FILED U/S.528 BNSS)
CR.P.C BY THE ADVOCATE FOR THE PETITIONER PRAYING
THAT THIS HONOURABLE COURT MAY BE PLEASED TO QUASH
THE FIR AND COMPLAINT (ANNEXURE-A AND B) IN CRIME
NO.0195/2025 DATED 23.12.2025 BY THE RESPONDENT NO.1
DEVANAHALLI POLICE STATION, FOR THE ALLEGED
COMMISSION OF OFFENCE U/S 34, 406 AND 420 OF THE IPC
1860, PENDING BEFORE THE CIVIL JUDGE AND JMFC,
DEVANAHALLI.
IN CRL.P NO. 999/2026
BETWEEN:
1. PRIYA VASUDEVAN,
W/O MR, VASUDEVAN SATHYAMOORTHY,
AGED ABOUT 53 YEARS,
OLD HAVING ADDRESS AT
Digitally Signed by ANANT
RAMNATH HEGDE

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HC-KAR
NC: 2026:KHC:57471
CRL.P No. 851 of 2026
C/W CRL.P No. 999 of 2026
WP No. 3292 of 2026
CNR: KAHC010045212026
NO.G2, SONA PALACE,
NO 32, NORRIS ROAD,
RICHMOND TOWN, BENGALURU - 560 025.
...PETITIONER
(BY SRI DEEPAK BHASKAR,ADVOCATE)
AND:
1. STATE OF KARNATAKA
REP. BY STATE PUBLIC PROSECUTOR,
HIGH COURT OF KARNATAKA,
THROUGH DEVANAHALLI POLICE STATION,
DEVANAHALLI SUB-DIVISION,
HAVING ADDRESS AT DEVANAHALLI,
BANGALORE - 562 110.
2.
VINOD KUMAR,
S/O LATE MAMCHAND,
AGED ABOUT 50 YEARS,
OLD HAVING ADDRESS AT
1701/16, 20TH C CROSS,
7TH MAIN, C BLOCK,
SAHAKARNAGAR, BENGALURU CITY,
KARNATAKA - 560092.
3. MR. PHALAKSH SHRISHAIL WALISHETTY,
S/O MR SHRISHAILAPPA,
AGED ABOUT 55 YEARS, OLD
HAVING ADDRESS AT
NO. T 1102, OZONE URBANA AVENUE,
KANNAMANGALA VILLAGE,
DEVANAHALLI TALUK, BENGALURU CITY,
KARNATAKA - 562110.
...RESPONDENTS
(BY SRI NAGHARISH G S, HCGP FOR R1,
R2 - SERVED)
THIS CRL.P IS FILED U/S 482 CR.PC (FILED U/S 528
BNSS) BY THE ADVOCATE FOR THE PETITIONER PRAYING
Digitally Signed by ANANT
RAMNATH HEGDE

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HC-KAR
NC: 2026:KHC:57471
CRL.P No. 851 of 2026
C/W CRL.P No. 999 of 2026
WP No. 3292 of 2026
CNR: KAHC010045212026
THAT THIS HONOURABLE COURT MAY BE PLEASED TO
QUASH THE IMPUGNED COMPLAINT (ANNEXURE-B) AND
THE REGISTERED OF FIRST INFORMATION REPORT IN
CR.NO.195/2025, DATED 23RD DECEMBER, 2025, BY THE
RESPONDENT NO.1, DEVANAHALLI P.S. (ANNEXURE-A).
IN WP NO. 3292/2026
BETWEEN:
MR. SRINIVASAN GOPALAN,
AGED ABOUT 53 YEARS,
RESIDING AT VILLA 88,
SOBHA LIFESTYLE LEGACY, IVC ROAD,
DEVANAHALLI, BANGALORE - 562110.
...PETITIONER
(BY SRI DEEPAK BHASKAR.,ADVOCATE)
AND:
1. STATE OF KARNATAKA
THROUGH DEVANAHALLI POLICE
STATION, DEVANAHALLI SUB-DIVISION
HAVING ADDRESS AT DEVANAHALLI,
BANGALORE - 562 110,
REPRESENTED BY STATE PUBLIC PROSECUTOR,
HIGH COURT OF KARNATAKA,
BANGALORE - 560001.
2. VINOD KUMAR
S/O LATE MAMCHAND,
AGED ABOUT 50 YEARS,
HAVING ADDRESS AT NO.1701/16,
20TH C CROSS, 7TH MAIN, C BLOCK,
SAHAKARNAGAR, BENGALURU KARNATAKA CITY.
3.
MR. PHALAKSH ALLEGED VICTIM SHRISHAIL
WALISHETTY,
AGED ABOUT 55 YEARS,
Digitally Signed by ANANT
RAMNATH HEGDE

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HC-KAR
NC: 2026:KHC:57471
CRL.P No. 851 of 2026
C/W CRL.P No. 999 of 2026
WP No. 3292 of 2026
CNR: KAHC010045212026
HAVING ADDRESS AT
NO. T 1102, OZONE
URBANA AVENUE, KANNAMANGALA VILLAGE
DEVANAHALLI TALUK,
BENGALURU CITY, KARNATAKA - 562110.
...RESPONDENTS
(BY SRI NAGHARISH G S, HCGP FOR R1
R2 - SERVED)
THIS WP IS FILED UNDER ARTICLE 226 OF THE
CONSTITUTION OF INDIA READ WITH SECTION 528 OF
THE BHARATIYA NAGARIK SURAKSHA SANHITHA, 2023
PRAYING TOA. ISSUE A WRIT OF CERTIORARI OR ANY
OTHER SUCH APPROPRIATE ORDER OR DIRECTION
QUASHING THE REGISTRATION OF THE IMPUGNED FIR IN
CRIME NO.195/2025, DATED 23RD DECEMBER, 2025, BY
THE RESPONDENT NO.1, DEVANAHALLI POLICE STATION,
ALLEGING OFFENCES UNDER SECTIONS 34, 406 AND 420
OF THE IPC (SECTIONS 3, 316 AND 318 OF THE BNS) AND
THE IMPUGNED COMPLAINT DATED 23RD DECEMBER 2025
FILED BY RESPONDENT NO.2, ON BEHALF OFRESPONDENT
NO.3 PENDING BEFORE THE HON'BLE COURT OF CJ AND
JMFC, DEVANAHALLI ANNEXED AT ANNEXURE A AND
ANNEXURE B.
THESE PETITIONS, COMING ON FOR ORDERS, THIS DAY,
ORDER WAS MADE THEREIN AS UNDER:
CORAM: HON'BLE MR. JUSTICE ANANT RAMANATH HEGDE
Digitally Signed by ANANT
RAMNATH HEGDE

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HC-KAR
NC: 2026:KHC:57471
CRL.P No. 851 of 2026
C/W CRL.P No. 999 of 2026
WP No. 3292 of 2026
CNR: KAHC010045212026
ORAL ORDER
Heard the learned counsel for the petitioners, learned
High Court Government Pleader for respondent No.1-State and
the learned counsel for respondents No.2, 3 and 4.
2. This petition is filed to quash FIR in Crime No.
0195/2025 registered on 23.12.2025 by respondent No.1
before Devanahalli Police Station, Bengaluru city for the alleged
offences under Sections 34, 406 and 420 of Indian Penal Code,
1860 ('IPC').
3. The petitioners in Crl.P.No.851/2026 are the
Directors of Ozone Urbana Infra Developers Private Limited.
Crl.P.No.999/2026 is filed by wife of an existing Director.
Crl.P.No.3292/2026 is filed by former Director seeking a similar
relief.
4. Respondent No.2 is the complainant. The complaint
is lodged on 23.12.2025 alleging offences under Section 61(2),
316(1), 316(2), 319(1), 318(2), 318(4), 322, 338, 336(3),
340(2) of Bharatiya Nyaya Sanhita, 2023 ('BNS').
Digitally Signed by ANANT
RAMNATH HEGDE

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HC-KAR
NC: 2026:KHC:57471
CRL.P No. 851 of 2026
C/W CRL.P No. 999 of 2026
WP No. 3292 of 2026
CNR: KAHC010045212026
5. In the complaint, it is alleged that the Directors of
the Company had a criminal intentions from the beginning to
cheat the investors like the complainant. It is alleged that the
second booking of the apartment allotted to the complainant
amounts to forgery.
6. It is also alleged that the manner in which the
money is collected, it amounts to a criminal conspiracy.
7. It is the further contention that the manner in which
the properties are sold, amounts to criminal breach of trust and
mortgaging the same property twice amounts to criminal
breach of trust and fraud. In this behalf the complaint is filed
and FIR is registered.
8. Learned counsel for the petitioners would submit
that the petitioners were the Directors of the Company. The
Company was established in the year 2007. Respondent No.3 -
complainant was allotted apartment on 15.12.2017 and
pursuant to that, respondent No.3 made certain payment.
9. On 01.07.2020, respondent No.3 realizing that the
project is not getting completed within the deadline, offered to
Digitally Signed by ANANT
RAMNATH HEGDE

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HC-KAR
NC: 2026:KHC:57471
CRL.P No. 851 of 2026
C/W CRL.P No. 999 of 2026
WP No. 3292 of 2026
CNR: KAHC010045212026
cancel the allotment and same was accepted by the Company
and the allotment is cancelled.
10. Thereafter, on 11.11.2021, the said apartment is
allotted to third party who is respondent No.2. Respondent
No.3 approached the Authority under the Real Estate
(Regulation and Development) Act, 2016 ('RERA') seeking relief
based on the agreement to buy back the property.
11. The Authority under the RERA passed Order on
11.10.2022 directing the Company to pay the amount as
assured under the buyback scheme. The said order has
attained finality and alleging non-compliance, respondent No.3
has filed a contempt petition.
12. Referring to the aforementioned facts and
circumstances, learned counsel for the petitioners would submit
that the investigation cannot take place and the dispute is a
purely civil dispute. Merely because there is a default on the
part of the Company to honour the commitment to complete
the project and to allot the apartment, one cannot jump to the
conclusion that it is a case of fraud.
Digitally Signed by ANANT
RAMNATH HEGDE

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HC-KAR
NC: 2026:KHC:57471
CRL.P No. 851 of 2026
C/W CRL.P No. 999 of 2026
WP No. 3292 of 2026
CNR: KAHC010045212026
13. Learned counsel for respondent No.3 would submit
that the fraud is very much apparent from the date when the
Company launched the project, in the year 2011. It is the
contention that the Company offered to buy back the property
within 36 months after the investment is made and said offer is
not fulfilled.
14. The project is not completed and the property
which is allotted to respondent No.3, is allotted to someone
else and acting on the assurance of the Company, the
complainant had obtained loan from the Bank and now the
same property is allotted to third party and third party has also
availed loan from the Bank and there is a double mortgage on
the said property and the Company has not repaid the amount,
as such, the Company has cheated the complainant and the
matter requires investigation.
15. Learned counsel would also refer to the judgment of
the Co-ordinate Bench of this Court in Writ Petition
No.31006/2025 and connected matters to contend that the Writ
Petitions filed challenging similar complaints have been
dismissed by the Co-ordinate Bench of this Court, as such, the
Digitally Signed by ANANT
RAMNATH HEGDE

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HC-KAR
NC: 2026:KHC:57471
CRL.P No. 851 of 2026
C/W CRL.P No. 999 of 2026
WP No. 3292 of 2026
CNR: KAHC010045212026
issue raised in the present petition is covered and the matter
has to be investigated and the petitioners have to tried for the
criminal offences.
16. The Court has considered the contentions raised at
the Bar and perused the records.
17. The petitioners do not dispute that an offer was
made to buy back the property within 36 months from the date
of investment. The complainant approached the Authority
under RERA and the Authority has passed an order directing
the Company to honour the commitment by paying the amount
as assured under the buyback scheme.
18. Admittedly, Rs.1 Crore is paid out of Rs.2.88 crore
ordered by the Authority under RERA. The balance amount is
not yet paid. The petitioner-Company is facing insolvency
proceeding before the National Company Law Tribunal,
Bangalore.
19. The contention that the property which was allotted
to respondent No.3-complainant is allotted to someone else
without there being a cancellation of allotment to complainant,
Digitally Signed by ANANT
RAMNATH HEGDE

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HC-KAR
NC: 2026:KHC:57471
CRL.P No. 851 of 2026
C/W CRL.P No. 999 of 2026
WP No. 3292 of 2026
CNR: KAHC010045212026
cannot be accepted. The allotment in favour of respondent
No.3- complainant is cancelled pursuant to the cancellation
offer made by respondent No.3 himself. The offer made by
complainant is accepted and thereafter the matter has gone to
the Authority under the RERA and the Authority has directed
repayment of the amount in terms of the buyback scheme.
20. Thus, the contention that the second allotment is
impermissible or second mortgage is impermissible cannot be
accepted.
21. Though, it is urged that the co-ordinate Bench of
this Court has dismissed the Writ Petitions filed by the
Company challenging the complaint filed by some of the other
investors, what is required to be noticed is, the Co-ordinate
Bench of this Court has held that the allegation relating to
money laundering and other allegations in terms of the
complaint filed by the ED have to be investigated. Said
judgment cannot be construed as having held that every
complaint lodged by an individual investor has to be
investigated.
Digitally Signed by ANANT
RAMNATH HEGDE

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HC-KAR
NC: 2026:KHC:57471
CRL.P No. 851 of 2026
C/W CRL.P No. 999 of 2026
WP No. 3292 of 2026
CNR: KAHC010045212026
22. Considering the facts and circumstances brought
about in this case, more particularly the offer of the
complainant to get the allotment cancelled and to seek
appropriate remedy in terms of the buyback scheme which is
accepted by the Authority under the RERA, the Court is of the
view that investigation into the allegations made in the
complaint by respondent No.3 is not justified. However, it is
made clear that this order should not be construed as having
expressed anything on the merits of the complaint filed by the
Enforcement Directorate.
23. This order is passed considering into the allegations
made in the complaint and the offer to cancel the allotment and
order passed by authority under RERA.
24. Hence, the following:
ORDER
(i) Accordingly, the Criminal Petitions are
allowed
.
Digitally Signed by ANANT
RAMNATH HEGDE

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HC-KAR
NC: 2026:KHC:57471
CRL.P No. 851 of 2026
C/W CRL.P No. 999 of 2026
WP No. 3292 of 2026
CNR: KAHC010045212026
(ii) FIR dated 23.12.2025 registered in Crime
No.0195/2025 by Devanahalli Police Station,
Bengaluru city is quashed.
(iii) This order will not come in the way of any
investigation carried out by Enforcement
Directorate.
In view of the disposal of these Criminal Petitions,
pending Interlocutory Applications does not survive for
consideration.
Digitally Signed by ANANT
RAMNATH HEGDE
(ANANT RAMANATH HEGDE)
JUDGE
GVP
List No.: 1 Sl No.: 11