Delhi court dismisses bail plea of man, his mother for selling mortgaged property for Rs 1 crore

A court here has dismissed the bail plea of a man and his mother for allegedly cheating a private bank by selling a mortgaged property for Rs 1 crore despite a stay by the Delhi High Court.

Additional Sessions Judge Gurdeep Singh Saini rejected the bail application of Nishant Arora and his mother for selling a flat for over Rs 1 crore to the complainant, Nishan Nitti, though the high court had stayed the operation in 2015.

According to the prosecution, Arora had taken a loan of Rs 1.6 crore from a private bank in 2012. Due to default in payment, the bank invoked the Arbitration and Conciliation Act and obtained an order against the sale of the mortgaged property in 2015.

Despite the stay in operation, they sold the property and gave its possession to the complainant in 2015.

The complainant lodged a case when he came to know through media reports that the property was mortgaged.

The accused denied the allegations, saying that the transaction had taken place in 2015 and the FIR was registered in 2019 and therefore there was delay in lodging of the FIR.

The counsel for the accused said that the complainant was well aware that the property stood mortgaged and therefore there was no misrepresentation from the inception and hence cheating is not made out.

"Keeping in view the fact that property stood mortgaged in the year 2012 and the accused had already defaulted in payment despite that they had entered into an agreement to sell and taken money and therefore there was deception at the very inception.

"Subsequently executing sale deed despite the knowledge of illegality is further step in that direction. Therefore both accused have not only cheated the complainant but also cheated the bank by disposing of the property while the property was mortgaged and stay was in operation," the court said.