Bounced cheque case: State edu minister fined Rs 7cr

BENGALURU: A special court has convicted school education minister Madhu Bangarappa over a bounced cheque. The minister has been ordered to pay a fine of Rs 6,96,70,000, failing which, he will be required to undergo simple imprisonment for six months.
The court held M/s Akash Audio-Video Private Limited, Bengaluru, and its director Madhu Bangarappa guilty under Section 138 of the Negotiable Instruments Act.
Court refused to accept Madhu Bangarappa's undertaking
Special judge J Preeth on December 27 ordered that out of the fine amount, Rs 6,96,60,000 will have to be paid to the complainant, M/s Rajesh Exports Limited, Bengaluru, while the remaining Rs 10,000 will be appropriated by the state. The special court for cases filed against sitting and former MPs/MLAs in Karnataka was hearing the case. Bangarappa had earlier deposited Rs 50 lakh in court and on December 26, 2023, the day before the verdict, filed an undertaking that he would pay the remaining amount by January 30, 2024.
However, declining his request, the special judge noted that accused no. 2 (Madhu Bangarappa) was in the habit of offering such undertakings without any compliance. "As such, this court is declined to take the said undertaking into consideration," the judge said in her order.
Akash Audio-Video had availed an Inter Corporate Deposit of Rs 6 crore from the complainant company. As the director of Akash Audio, Bangarappa had executed a declaration, confirming the receipt of the deposit and issuance of a cheque dated July 16, 2011, in favour of Rajesh Exports, with 10% interest as agreed upon.
However, when the cheque was dishonoured due to insufficient funds, Rajesh Exports filed a petition for recovery of the amount.