- 1 - NC: 2025:KHC:11980 CRL.P No. 12260 of 2024 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 19TH DAY OF MARCH, 2025 BEFORE THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR CRIMINAL PETITION NO. 12260 OF 2024 BETWEEN: 1. SRI. PALAKA SURESH AGED ABOUT 47 YEARS, S/O P.S. PRAKASA RAO PLOT NO.642, M.V. NELIFLAT NO.201, 1ST MAIN, C BLOCK, BROOKFIELDS AECS LAYOUT KUNDALAHALLI, BENGALURU - 560 037 M/S SURYA HOMES WAS REP. BY MANAGING PARTNER PALAKA SURESH (DISSOLVED IN THE YEAR 2022) …PETITIONER (BY SRI. NAGESH S., ADVOCATE) AND: 1. STATE OF KARNATAKA BY WHITEFIELD POLICE REPRESENTED BY STATE PUBLIC PROSECUTOR HIGH COURT COMPLEX, BENGALURU - 560 001. 2. MRS. RUCHI AHLUWALIA AGED ABOUT 47 YEARS W/O VIVEK AHLUWALIA R/A A-301, GOPALN HABITAT SPLENDOUR, ITPL MAIN ROAD, NEAR CMRIT, KUNDALAHALLI, BENGALURU - 560 037. …RESPONDENTS Digitally signed by R HEMALATHA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:11980 CRL.P No. 12260 of 2024 (BY SRI. LAKSHMAN B., HCGP FOR R-1; SRI. A.V. GANGADHARAPPA, ADVOCATE FOR R-2) THIS CRL.P IS FILED U/S 482 CR.PC (FILED U/S 528 BNSS) PRAYING TO QUASH THE FIR AND COMPLAINT IN CR.NO.702/2024 DATED 03.10.2024 REGISTERED BY RESPONDENT NO.1 WHITE FIELD POLICE STATION POLICE AGAINST THE PETITIONER FOR THE ALLEGED OFFENCE P/U/S 406, 417, 420, 506 OF IPC, VIDE ANNEXURE-A PRODUCED HEREIN BEFORE ADDL. CJM (ACJM) BANGALORE. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR ORAL ORDER 1. The petitioner challenges the registration of the First Information Report (FIR) for offences punishable under Sections 406, 417, 420, and 506 of the IPC. 2. Respondent No.2 lodged the FIR, stating that the petitioner, as the managing partner of M/s Surya Homes, executed a sale deed dated 18.02.2015 in favor of Respondent No.2 concerning Flat No.412, 4th floor, described under Schedule ‘C’ of the sale deed. The entire sale consideration was allegedly paid to the petitioner. However, despite several requests, the petitioner failed to hand over vacant possession of the flat and instead converted it for commercial purposes, leasing it to Bag Pack Suites Bangalore Pvt. Ltd. It was further alleged that - 3 - NC: 2025:KHC:11980 CRL.P No. 12260 of 2024 after obtaining approval from the BBMP, the petitioner misused the conversion order for commercial purposes. 3. Learned counsel for the petitioner submits that Respondent No.2 had filed a complaint under Section 30(1) of the Real Estate (Regulation & Development) Act, 2016, before the Real Estate Regulatory Authority Karnataka (“RERA”), seeking a direction to hand over vacant possession of the flat. After conducting an inquiry, RERA recorded findings that the subject flat had been handed over to Respondent No.2, who expressed willingness to lease it to Bag Pack Suites Bangalore Private Limited. Suppressing the order passed by RERA, the FIR was lodged with an ulterior motive to exact vengeance, driven by a revengeful intent to pressurize the petitioner into settlement. The allegations made in the FIR do not satisfy the essential elements constituting the offences alleged against the petitioner. Therefore, the continuation of the investigation would be an abuse of the process of law. 4. In response, learned counsel for Respondent No.2 argues that the allegations in the FIR disclose the commission of offences alleged against the petitioner, and the veracity of these allegations requires investigation, which cannot be examined at this stage of the proceedings. He further contends that except for executing - 4 - NC: 2025:KHC:11980 CRL.P No. 12260 of 2024 the sale deed, the petitioner has neither completed the project nor handed over the vacant possession of the flat in question. 5. The learned High Court Government Pleader supports the submissions made by learned counsel for Respondent No.2. 6. The arguments advanced by learned counsel for the petitioner, learned counsel for Respondent No.2, and the learned High Court Government Pleader for the respondent-State have been duly considered. 7. The allegation in the FIR is that the petitioner failed to hand over vacant possession of the subject flat despite Respondent No.2 having paid the entire sale consideration. Instead, the petitioner allegedly converted the flat for commercial purposes and leased it to Bag Pack Suites Bangalore Private Limited without the consent of the complainant. 8. It is undisputed that Respondent No.2 filed a complaint under Section 30(1) of the Real Estate (Regulation & Development) Act, 2016, before RERA. By an order dated 16.05.2024, RERA dismissed the complaint, categorically finding that a certificate was signed by the complainant, who, as the owner of the flat, - 5 - NC: 2025:KHC:11980 CRL.P No. 12260 of 2024 had expressed willingness to lease the flat to Bag Pack Suites Bangalore Private Limited. 9. The FIR was lodged on 03.10.2024, suppressing the order passed by RERA, which clearly held that the flat was leased to Bag Pack Suites Bangalore Private Limited with the consent of the complainant. 10. Learned counsel for Respondent No.2 submits that an appeal has been filed against the order passed by RERA. The dispute pertains to the non-delivery of vacant possession of the flat, which does not constitute an offence under Sections 406 and 420 of the IPC unless it is established that the petitioner induced Respondent No.2 to purchase the flat through deception. 11. The issue of whether vacant possession of the flat has been handed over to Respondent No.2 has already been addressed by RERA, and the matter is currently pending consideration before the Appellate Authority. In such circumstances, the police cannot investigate the issue concerning the non-delivery of vacant possession of the flat. 12. In view of the above, I pass the following: ORDER i) The criminal petition is allowed. - 6 - NC: 2025:KHC:11980 CRL.P No. 12260 of 2024 ii) The impugned FIR in Crime No.702/2024, registered by the respondent No.1-Whitefield Police Station, insofar it relates to the petitioner herein is hereby quashed. Pending I.A.No.1/2024 does not survive for consideration and stands disposed of. Sd/- (HEMANT CHANDANGOUDAR) JUDGE HR List No.: 1 Sl No.: 108