In Brief
This case concerns a criminal charge under Section 420 IPC (cheating) against Samir Sahay for his involvement in the Aneja Consultancy investment scheme. The appellant was charged after the company, where his father was Branch Manager, failed to return investors' deposits. The Supreme Court held that the ingredients of cheating—fraudulent or dishonest inducement at the time the promise is made—were absent. The FIR only alleged the appellant accompanied his father; it contained no allegation that he personally induced deception. The Court distinguished between breach of contract and criminal cheating, holding mere failure to fulfil promises does not constitute crime without proof of fraudulent intent from inception. The appeal was allowed and the appellant was discharged.
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