Delhi Court Acquits Ex-MLA Ranbir Singh Kharab And Wife In Investor Fraud Case

The Trial Court convicted Ranbir Singh Kharab and Anita Kharab (appellants) under Section 420 IPC (Cheating and dishonestly inducing delivery of property) on 13 December 2023. They were sentenced to 7 years rigorous imprisonment and fine of Rs. 22 Lakhs.

The prosecution's case was that they hatched a criminal conspiracy to cheat the general public, by way of a scheme floated through a finance company. It was alleged that they induced the general public to invest money in the company by alluring them with high interest rates and monetary gains, however, never returned the money.

Judge Kaveri Baweja, Additional Sessions Judge (PC Act), Rouse Avenue District Court, found that there were discrepancies in the statements of prosecution witnesses.

The Court took note of PW-2's deposition, where he stated that that the accused persons did not return the invested amount. It further referred receipt (Ex.PW2/A) which Anita Kharab asked PW-2's father to write. It observed that the contents of the receipt reveal that Anita had taken a 'loan' from PW-2 for the purpose of business.

The Court stated that the receipt reveal that contents of this document are contradictory to the deposition of the prosecution witnesses.

“It is settled law that documentary evidence must take precedence over the oral evidence and the documents in question viz receipt Ex.PW2/A clearly finds mention that the sum of Rs. 23 Lakhs was taken by Accused Anita Kharab from PW2 as a loan over a period of time during the year 2001-2002 for the purpose of her business.”

The Court noted that none of the prosecution witnesses gave any explanation as to why the term used in receipt was 'loan' or as to why a loan was taken which claimed to be an 'investment'.

On the deposition of PW3, the father of PW-2, that he gave Rs. 22 Lakhs for the purpose of investment, the Court noted that he admitted to not filing any document to show that money was withdrawn from his account. It observed, “He deposed upon being cross examined that he invested Rs. 12 Lakhs in the company of accused from his savings and savings of his wife. However, he admitted that he did not file any document to show that money was withdrawn from his account and account of his wife.”

The Court also found discrepancies in statements of other prosecution witnesses.

The Court thus found that the prosecution did not prove the guilt of the appellants beyond reasonable doubt. It set-aside the Trial Court's order and acquitted Ranbir Singh Kharab and Anita Kharab.

“In the light of evidence led on record in the course of trial and the submissions made, it is apparent that the Prosecution has failed to bring home the guilt of the Appellants beyond the realm of reasonable doubt. In fact, there are glaring contradictions and discrepancies which have not been appreciated by the Ld. Trial Court in the impugned judgment.”

Case title: Ranbir Singh Kharab & Another v. State (Crl. Appeal No. 02/2024)