A Bengaluru Sessions Court has granted anticipatory bail to three directors of a private firm, including Mohan Gunderahalli Mahalingappa, in connection with a high-stakes cheating case registered at Indiranagara Police Station. The order, delivered by Sri Narashimsa M.V., presiding judge of the LX Additional City Civil and Sessions Court (CCH 61), comes amid allegations that the accused defrauded a Hyderabad-based company of Rs 70 lakhs under the guise of a housing project tender.

The petitioners, identified as Mohan Gunderahalli Mahalingappa, Arjun Gunderahalli Mahalingappa, and Geethakrishna, sought legal protection against arrest in Crime No. 120/2022. The Indiranagara Police had booked the trio under Sections 406 (criminal breach of trust) and 420 (cheating) read with Section 34 of the Indian Penal Code.

The Core of the Allegations

The case was initiated based on a complaint filed by the CEO of Logic Mining and Construction Pvt. Ltd., headquartered in Hyderabad. According to the first information report, the accused persons presented themselves as directors of Saanvi Priaya Build Tech Pvt. Ltd. They allegedly claimed to have secured a prestigious tender for a Rajiv Gandhi Housing Society project, which involved the construction of over 400 houses.

The complainant alleged that following negotiations facilitated by mutual associates, a Memorandum of Understanding (MOU) was signed on July 16, 2021. Believing the project to be legitimate, the Hyderabad-based CEO transferred a total of Rs 70 lakhs to the accused’s company in several installments during August 2021. However, by April 2022, the complainant reportedly discovered that the housing project tender had never been awarded to Saanvi Priaya Build Tech Pvt. Ltd., leading to the police complaint and allegations of professional deception.

Defense Arguments Highlight Civil Nature of Dispute

Represented by Advocate Vellanki Ravi, the petitioners argued that the case was essentially a civil business dispute that had been intentionally given a criminal color. They contended that the allegations were groundless and that they were law-abiding citizens with deep roots in Bengaluru’s business community.

The defense pointed out that the MOU signed between the two companies contained a specific arbitration clause, suggesting that any financial disagreements should be settled through civil legal channels rather than criminal prosecution. They further argued that the offenses alleged do not carry a penalty of death or life imprisonment and are triable by a Magistrate, making them eligible for the court’s discretion regarding bail.

The Prosecution’s Resistance

The Public Prosecutor strongly opposed the bail application, citing the magnitude of the financial fraud. The prosecution argued that if released, the accused might abscond, influence witnesses, or destroy evidence. The Investigating Officer (I.O.) submitted that several complex financial transactions occurred between the parties which required detailed interrogation to ascertain the flow of funds. The state maintained that the investigation was at a crucial stage and the accused should remain available for custodial questioning.

The Court’s Observations and Final Order

After hearing both sides, Judge Narashimsa M.V. noted that the essence of the police complaint appeared to be the recovery of money. The court observed that the payments were made in August 2021 and that the background of the case strongly suggested a civil dispute stemming from a contractual agreement.

The court highlighted that in cases where the evidence is primarily documentary—such as bank statements, MOUs, and emails—the risk of the accused tampering with evidence is minimal, as these records are already preserved. The judge remarked that the legal remedies for recovering money are available to the complainant through civil courts and that the penal sections involved were not of the highest gravity.

The court allowed the anticipatory bail application for Mohan Gunderahalli Mahalingappa, Arjun Gunderahalli Mahalingappa, and Geethakrishna. In the event of their arrest, the police are directed to release them subject to the following conditions:

The petitioners must execute a personal bond of Rs 50,000 each with a surety of the same amount. They are required to appear before the Investigating Officer by June 30, 2022, to cooperate with the ongoing probe. Furthermore, they are strictly prohibited from tampering with prosecution witnesses and must attend all future court proceedings without fail.