Supreme Court Imposes ₹10 Lakh Costs on Builder’s Agent for Lodging Frivolous FIR to Force Property Sale

The Supreme Court has imposed ₹10 lakh as exemplary costs on a builder’s agent who falsely lodged a criminal FIR to compel the sale of a property. The FIR, registered under Sections 420 and 406 IPC (cheating and criminal breach of trust), alleged that a retired army officer’s wife and daughter had taken ₹4.8 crore for a plot and farmhouse sale but refused to execute the sale deed.

The case exposed that the underlying dispute was purely civil, with no criminal intent or action. The complainant did not receive full payment and had initiated a suit for specific performance. Despite this, the accused 70-year-old woman and her daughter were arrested and held in custody for eight days, a move the Court described as humiliating and unwarranted.

A bench led by Justices Vikram Nath and Sandeep Mehta was critical of the Telangana High Court for dismissing the petition under Section 482 CrPC in an unreasoned and perfunctory order. The Supreme Court described the High Court’s conduct as “laconic and perfunctory,” highlighting the need for courts to address the merits, not bypass them.

Quashing the FIR, the Court stated that the complainant had misused the criminal justice system to gain leverage in a civil matter. The ₹10 lakh penalty has been ordered to be credited to the bank account of the appellants. The Court also instructed Hyderabad police authorities to provide protection to the appellants amid fears of threats or harm.

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Judgment Date: July 18, 2025
Bench: Justices Vikram Nath & Sandeep Mehta
Custody Meted: 8 days for no real offence
Penalty: ₹10 lakh in exemplary costs
Police Directive: Ensure safety of appellants