Pharma Businessman Sentenced to 2 Years in Jail Over Rs 30L Cheque Bounce Case in Ahmedabad

The complaint was filed by Jagdishbhai Chandel, a resident of Raipur in Ahmedabad, against Mohanji Paliwal, a Vapi resident involved in the pharmaceutical business. Chandel was represented before the court by senior advocate Ayaz Sheikh.

According to the complainant, Paliwal was a close acquaintance of his brother in law and had approached him seeking investment in his pharmaceutical businesses. Paliwal allegedly showed Chandel his businesses operating across Vapi, Umargam, Valsad, Silvassa and Daman while seeking the investment.

The accused allegedly presented himself as a major medicine wholesaler and claimed that he supplied medicines to large hospitals. Trusting these representations, Chandel stated that he invested a total of ₹1.18 crore in Paliwal's business through instalments made between 2012 and 2017.

For some time, Paliwal allegedly provided Chandel with a 30% return on his investment. However, according to the complaint, the accused stopped paying the returns after 2017. He also allegedly failed to provide the complainant with an account of the investment.

As the dispute over the investment and repayment continued, Paliwal allegedly issued three cheques of ₹10 lakh each to Chandel towards repayment. The three cheques together amounted to ₹30 lakh.

When the complainant deposited the cheques with the bank, they were allegedly dishonoured and returned unpaid. The cheque bounce subsequently became the basis of the legal proceedings against Paliwal.

During the trial, the court examined the oral as well as documentary evidence placed before it. After considering the evidence and material available on record, the court found that the complainant had established the facts stated in his complaint and affidavit.

The court further observed that the accused had failed to rebut the evidence presented by the complainant. The material before the court established the existence of a legally enforceable debt, supporting the complainant's case concerning the three dishonoured cheques.

While pronouncing the sentence, Additional Chief Judicial Magistrate H D Patel adopted a strict approach towards the economic offence. The court emphasised the need for stringent action in cases involving financial and economic offences, particularly as such offences are becoming increasingly prevalent.

The court observed that failure to take strong action against economic offences could have an adverse impact on society. It held that appropriate punishment was necessary not only in the present case but also to set an example and deter others from committing similar offences.

Gujarat Samachar reports that the Ahmedabad court sentenced the Vapi based pharmaceutical businessman to two years in prison following the dishonour of three ₹10 lakh cheques issued in connection with the pharmaceutical business investment dispute.

The court has consequently sentenced Paliwal to two years’ imprisonment and directed him to pay ₹30 lakh compensation within 30 days. Failure to pay the compensation within the specified period will result in another six months of imprisonment.