Delhi High Court refuses to quash FIR against ATS Infrastructure and its Directors in alleged fraud case
Justice Swarana Kanta Sharma [01-07-2024]

Read Order:  M/S ATS INFRASTRUCTURE LIMITED & ORS v. STATE OF NCT OF DELHI & ANR DEL HC W.P.(CRL) 325/2024 & CRL.M.A. 2973/2024

LE Correspondent

New Delhi, July 3, 2024: The Delhi High Court has dismissed a petition filed by ATS Infrastructure Limited and its directors seeking to quash an FIR registered against them for alleged offences of criminal breach of trust and cheating under sections 406/420/120B of the the Indian Penal Code, 1860.

The FIR was lodged based on a complaint filed by a woman who alleged that the directors of ATS Infrastructure had induced her to invest Rs. 2.62 crores in their residential project 'ATS Pristine' in Noida, Uttar Pradesh, with promises of significant returns through a buy-back scheme. As per the scheme, the company had agreed to buy back the allotted apartments at a premium after 36 months and issued post-dated cheques.

However, when the complainant deposited the cheques, they were dishonored, and the company allegedly refused to honor the agreement, causing her substantial financial loss. The accused company and its directors had approached the High Court, arguing that the dispute was purely civil and that the criminal proceedings against them should be quashed. They contended that the complainant had misused the police machinery and concealed the fact that cheque dishonor proceedings were already pending before a magistrate.

However, the High Court, after considering the arguments and the status report filed by the police in connected matters, observed that the investigation was still at an initial stage and that the police, after conducting a preliminary inquiry, had registered the FIR as it appeared that cognizable offences were prima facie committed by the petitioners.

The Court noted that there were apprehensions that the accused might have adopted a similar modus operandi in this case, as in other connected matters, where the units meant for the complainants were allegedly sold to third parties. The Court held that only a proper investigation could unearth the truth and bring clarity to the case.

Dismissing the petition, the High Court stated that the FIR could not be quashed at this stage, and the police investigation would determine whether any offence was made out under the relevant sections of law. The Court clarified that if no offence is found during the investigation, the police would be at liberty to file an appropriate report under Section 173 of the Criminal Procedure Code.