Court Rejects Petitioners' Claims of Delay and Civil Dispute, Emphasizes Need for Investigation Into Alleged Cheating and Criminal Breach of Trust
In a significant judgment dated August 12, 2026, the Karnataka High Court, presided over by Mr. M. Nagaprasanna, J., has refused to quash criminal proceedings against two accused individuals, Dr. Shilpa Aravali and Mr. P Kiran Kumar, involved in an alleged fraudulent transaction amounting to Rs. 1.40 crore. The case centers on accusations that the petitioners deceived a complainant by promising to secure a medical college seat for her daughter, taking a substantial sum of money which neither resulted in admission nor was returned.
The complainant, Ms. Smita Prasad, employed at Himalaya Wellness Company, and her husband, an Assistant General Manager at Canara Bank, claimed that in February 2023, during a visit to Prakriya Hospital, she was approached by Dr. Shilpa Aravali. The accused represented that they had influential contacts capable of securing a medical seat for Ms. Prasad's daughter, who had failed to secure admission through the NEET examination. Relying on these assurances, Ms. Prasad and her husband paid Rs. 35 lakh in cash initially, followed by an additional Rs. 1.05 crore through bank transfers to Mr. Kumar's account.
Despite repeated assurances, the promised medical seat was never secured, and the accused began evading the complainant's inquiries and demands for a refund. After nearly two years, the complainant lodged a police complaint resulting in FIR registration and initiation of criminal proceedings against the accused for offences under Sections 406 (criminal breach of trust), 420 (cheating), and 34 (common intention) of the Indian Penal Code (IPC).
The petitioners argued that the delay in filing the complaint and the characterization of the matter as a civil dispute for recovery of money warranted quashing of the criminal case. However, the High Court held that the presence of allegations involving deception, inducement, and dishonest intention at the very inception of the transaction sufficiently prima facie established the elements of cheating and criminal breach of trust. The Court emphasized that the criminal law cannot be stifled at the threshold merely on the ground of delay or because the transaction involves money.
The Court observed that entrustment of the substantial sum of Rs. 1.40 crore to the accused specifically for securing a medical seat, neither fulfilled nor refunded, fulfills the foundational ingredient of criminal breach of trust. Similarly, the alleged false representations and dishonest inducement to part with money make out a prima facie case of cheating. The Court stressed that whether the allegations withstand the rigors of trial is a matter for investigation and trial, and the Court cannot prematurely quash the proceedings.
Rejecting the petitions, the High Court underscored the necessity of a thorough and impartial investigation to separate truth from falsehood and to ensure justice is served. The judgment sends a strong message that fraudulent inducements relating to education and other essential services will be scrutinized rigorously, and the criminal justice system will not be circumvented under the guise of civil disputes.
Bottom Line:
Allegation of inducement and deception in a transaction involving payment of Rs. 1.40 crore for securing a medical seat - Court held that the criminal law cannot be stopped at the threshold merely on the plea of delay or characterizing the transaction as a civil dispute.
Statutory provision(s):
Indian Penal Code Sections 405, 406, 415, 420, 34
Shilpa Aravali v. State of Karnataka, (Karnataka) : Law Finder Doc Id # 2977640
