- 1 - HC-KAR NC: 2025:KHC:30049 CRL.P No. 1821 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 4TH DAY OF AUGUST, 2025 BEFORE THE HON'BLE MS. JUSTICE J.M.KHAZI CRIMINAL PETITION NO. 1821 OF 2022 (482(Cr.PC) / 528(BNSS)) BETWEEN: 1. CRISTIN CARDOZA S/O LATE B CARGOZA AGED ABOUT 45 YEARS 2. VIVEK JAYARAJ S/O N P JAYARAJ AGED ABOUT 45 YEARS OWNERS OF PEARL CHUGANI PROPERTIES PVT LTD NO.5, VICTORIA ROAD BANGALORE-560047. …PETITIONERS (BY SRI.Y.R.SADASIVA REDDY, SR. COUNSEL FOR SRI. RAHUL S REDDY, ADVOCATE FOR P1; SRI.K.R.SATHISHA, ADVOCATE FOR P2) AND: 1. THE STATE BY KOLAR CEN CRIME, KOLAR REP BY SPP HIGH COURT OF KARNATAKA BANGALORE-560001. 2. RAVINDRA SIRUR S/O J M SIRUR Digitally signed by REKHA R Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:30049 CRL.P No. 1821 of 2022 AGED ABOUT 50 YEARS R/A NO.36, 14TH MAIN, VIJAYANAGAR BANGALORE-560040. …RESPONDENTS (BY SRI.VENKAT SATYANARAYAN.A, HCGP FOR R1; SRI.ANIRUDH SURESH, ADVOCATE FOR R2) THIS CRL.P IS FILED U/S.482 CR.P.C BY THE ADVOCATE FOR THE PETITIONER PRAYING TO QUASH THE FIR WITH RESPECT TO THE PETITIONER IN CR.NO.48/2021 REGISTERED BY THE KOLAR CEN CRIME FOR THE OFFENCES P/U/S.406 AND 420, 34 OF IPC ON THE FILE OF THE PRINCIPAL SENIOR CIVIL JUDGE AND CJM COURT, KOLAR. THIS PETITION, COMING ON FOR DICTATING ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MS. JUSTICE J.M.KHAZI ORAL ORDER Petitioners who are arraigned as accused Nos.1 and 2 have filed this petition under Section 482 of the Code of Criminal Procedure, seeking quashing of criminal proceedings initiated against them in Cr.No.48/2021 of Kolar CEN Police for the offences punishable under Sections 406, 420 r/w 34 of IPC. 2. In support of the petition, petitioners have contended that the registration of FIR and continuation of - 3 - HC-KAR NC: 2025:KHC:30049 CRL.P No. 1821 of 2022 investigation is not tenable and liable to be quashed. Even if entire allegations in the complaint are accepted as true, it would not make any prima facie case. It is the petitioners who were ready to complete the project. Respondent No.2 has neither received the notice nor come forward to resolve the issue. Notice sent to him is returned with endorsement 'Not claimed'. Repeated message were sent to respondent No.2 to complete the MOU and JDA. 3. As per the registered General Power of Attorney dated 04.04.2013, petitioners are having authority to sell and dispose of by way of sale, gift, lease, mortgage and exchange. They are also having right to settle the accounts. As per the JDA dated 04.04.2013, petitioners have the absolute right to alienate sites allotted to their share, which is 68% of the property. As per the JDA, petitioners have constructed Villas. When the construction had reached lintel level, respondent No.2 and partners demanded for formation of sites. Accordingly, though petitioners had spent more than Rs.1.5 Crores for the - 4 - HC-KAR NC: 2025:KHC:30049 CRL.P No. 1821 of 2022 construction, they demolished the same and entered into a fresh MOU dated 28.05.2015. As per the same, the parties are at liberty to sell the plots to individual customers. 4. After the demolish of the structures and when the work was going on for formation of sites, civil litigations were forthcoming and they were settled on 10.03.2020. Again on the insistence of respondent No.2, MOU dated 06.09.2018 was entered into, according to which the petitioners have option to modify the layout plan bifurcating individual plots into two and also construct Villas. When petitioners started construction of Villas, respondent No.2 demanded more money. After lapse of two years, complaint is filed. Continuation of the proceedings would amount to abuse of the process of the Court and hence, the petition. 5. Learned High Court Government Pleader representing respondent No.1 State and learned counsel for respondent No.2 would submit that respondent No.2 is - 5 - HC-KAR NC: 2025:KHC:30049 CRL.P No. 1821 of 2022 the partner in MOTZKIN Ventures. Sanjay Garg, Nitin Garg, Atul Divedi, Naveen Kumar Gupta, Deepak Singh and Ravi Koradikere are also the partners of the said firm ('Partnership firm' for short). They purchased land in Sy.No.14/1 measuring 1 acre 1.25 guntas, Sy.No.15, 16/2 measuring 4 acres 21 guntas in the name of MOTZKIN ventures. 5.1 To develop the same, the partnership entered into a joint development agreement(JDA) dated 04.04.2013, with the Pearl Chugani Properties Private Ltd of accused No.1 Cristin Cardoza, accuse No.2 Vivek Jayraj and others. As per the JDA, the partnership has received Goodwill of ₹60 lakhs + ₹30 lakhs. The accused are required to construct 35 Villas and a clubhouse and out of it, it has to handover 12 villas to the partnership firm and retain remaining Villas and dispose them off for their benefit. However, the accused persons failed to develop the said property and went on postponing the same. - 6 - HC-KAR NC: 2025:KHC:30049 CRL.P No. 1821 of 2022 5.2 When the accused persons expressed difficulty in executing the JDA, the partnership firm and accused entered into a modified JDA dated 28.05.2015, according to which the accused are required to form sites instead of Villas and share them as per the JDA. However, accused also failed to carry out the said work. 5.3 On the other hand, they offered to divide the sites into two portion and construct two Villas each within 21 months and in this regard a new agreement dated 06.09.2018 came to be entered into. However, the accused persons have once again failed to construct the Villas and on the other hand, they have sold 16 sites for ₹4.4 crores and thereby cheated the partnership firm. This fact is evident from the encumbrance certificate. When questioned the accused persons have claimed that they are not having money to execute the work and therefore they did not carry out the work. In this manner, the accused persons have cheated the partnership. Therefore, - 7 - HC-KAR NC: 2025:KHC:30049 CRL.P No. 1821 of 2022 complaint is filed and case is registered. There is prima facie material to proceed against the all the accused persons, including the petitioners. On account of stay, the investigation could not be proceeded with and pray to dismiss the petition. 6. Heard arguments and perused the record. 7. It is not in dispute that the partnership firm is the owner of properties in Sy.Nos.14/1, 15 and 16/2 totally measuring 5 acres 21.25 guntas. It had entered into JDA dated 04.04.2013, according to which the petitioners were supposed to construct 35 Villas and transfer 12 Villas to the partnership firm and disposed of remaining Villas and take the proceeds. It is also not in dispute that the said agreement was not executed. Therefore, on the inability expressed by the petitioners, memorandum of understanding dated 28.8.2015 (referred to as second agreement) was entered into. As per this memorandum of understanding, the petitioners were - 8 - HC-KAR NC: 2025:KHC:30049 CRL.P No. 1821 of 2022 required to form sites and they were to be shared as per the terms. They are not supposed to sell the sites individually and required to dispose them off with mutual consent and agreement. It is also not in dispute that once again, the petitioners failed to execute the work and offered to divide the Villas into two portions of lesser dimension. Therefore, a third agreement came to be entered into on 06.09.2018. Once again, the accused have failed to execute the work. On the other hand without the consent and knowledge of the partnership firm they have disposed of individual sites, without developing the entire property. 8. In the light of the above facts and circumstances, there is prima facie material to proceed against the petitioners. Matter requires a full fledged investigation. The decisions relied upon by the petitioners are not applicable to the facts and circumstances of the case on hand. It is not a case for quashing the criminal proceedings and accordingly, the following: - 9 - HC-KAR NC: 2025:KHC:30049 CRL.P No. 1821 of 2022 ORDER Petition filed by the petitioners/accused Nos.1 and 2 under Section 482 Cr.P.C is hereby rejected. Sd/- (J.M.KHAZI) JUDGE RR List No.: 1 Sl No.: 42