SOURCE :- SIASAT NEWS
Hyderabad: Former Bharat Rashtra Samithi (BRS) MLA Rohit Reddy, aka Pilot Rohit Reddy, was convicted in a Rs 34. 23 lakh cheque-bounce case on Saturday, August 8.
The first Metropolitan Court issued a non-bailable warrant against Reddy, who failed to appear when the judgement was pronounced.
The complainant, Intellidecs Pvt Ltd, had appointed Rohith Reddy as one of its directors to help expand its business.
The company director, Pinnapareddy Jaya Aditya Reddy, alleged that the former MLA diverted the firm’s resources for his personal benefit instead of helping the business grow. He also accused Reddy of travelling to Jammu and other places at the company’s expense on the pretext of business expansion.
The former BRS MLA was also accused of diverting office resources for personal use. When the company questioned him about the irregularities, he agreed to give up his advisory fee and resigned as a director on February 7, 2014.
In August same year, the two parties reached an agreement that Reddy would pay Rs 34.23 lakh towards the liabilities. The following month, he issued a cheque for Rs 34.23 lakh towards discharge of the liability and also executed a promissory note.
When the cheque was presented for encashment, it bounced. It was presented again four days later, but was returned for the same reason.
The company subsequently issued a legal notice to Reddy in January 2015. However, the notice was returned with the endorsement “refused”. The company then filed a complaint against him in 2015.
After hearing the arguments of both sides, the court found the former MLA guilty and held that the provisions of Section 138 read with Section 142 of the Negotiable Instruments Act were applicable. The court noted that under Section 138 of the Act, a fine may extend to twice the cheque amount. Since the cheque was for Rs 34.23 lakh, the court said it could impose a fine of up to Rs 68.46 lakh.
Non-bailable warrant issued
Issuing a non-bailable warrant against Reddy, the court said, “As the accused is not present at the time of pronouncement of judgment, hence, a non-bailable warrant is issued against him. The plea of guilty on conviction shall be heard at the time of production of the accused.”
SOURCE : SIASAT
