Authority: High Court of Judicature at Madras

Order Date: 28 July 2026

Case Overview

  • Criminal Revision Cases: Crl.R.C.Nos.212‑215 of 2026; Criminal Original Petitions: Crl.O.P.Nos.26180, 26220, 32215, 32234 of 2025.
  • Petitioners (including Manav Goyal, Gaurav Goyal, Rakesh Harlalka, Dinesh Sharma, Dinesh Kumar, etc.) filed revisions against a common order dated 12 Jan 2026 passed by the Additional Chief Metropolitan Magistrate, Special Court for CBI Cases, Egmore, Chennai.
  • The prosecution alleged a conspiracy to defraud State Bank of India (SBI) by inflating valuations of three villas (“The Palms”) in Sholinganallur Taluk, Chennai, and obtaining housing term loans:
  • Villa No.5: loan of Rs 5.19 crore, Suraksha loan Rs 11.17 lakhs; loss Rs 5,96,99,913 as on 08‑03‑2022.
  • Villa No.3: loan of Rs 5.14 crore, Suraksha loan Rs 18.31 lakhs; total disbursed Rs 5.31 crore.
  • Villa No.1: loan of Rs 5.25 crore, Suraksha loan Rs 7.87 lakhs; total disbursed Rs 5.25 crore.
  • Valuations submitted by two valuers were allegedly inflated (e.g., Rs 7.09 crore and Rs 6.96 crore vs. actual value Rs 2.68 crore).
  • The properties lie in Coastal Regulation Zone‑III, a no‑development zone; plan approvals were either invalid or fabricated.
  • Funds were partially transferred to developers (Rs 2.25 crore per villa) and the remainder diverted to the first accused, his wife, and a clinic (total diversion Rs 1.55 crore in one case).
  • The loan accounts were classified as Non‑Performing Assets and later as fraud accounts per RBI guidelines; SARFAESI proceedings were initiated.
  • The prosecution invoked IPC Sections 120B r/w 420, 468, 471, 405, 406, and 420, alleging criminal conspiracy, cheating, and criminal breach of trust.
  • The petitioners contended they had no knowledge of the loan applications, received only the actual market value proceeds, and did not fabricate any documents.
  • The court examined the legal requisites of Sections 405, 406, and 420, and referenced Supreme Court judgments (Indian Oil Corp. vs NEPC, G. Sagar Suri vs State of UP) on the misuse of criminal law for civil disputes.

Final Outcome

  • The common order dated 12 Jan 2026 is set aside.
  • All petitioners are discharged from all charges in C.C.No.2800 of 2024.
  • Proceedings in C.C.No.15 of 2025 (XI Additional City Civil and Session Court, Chennai) and C.C.No.2905 of 2025 (Additional Chief Metropolitan Magistrate, Egmore) are quashed insofar as they pertain to the petitioners.
  • Trial courts are directed to continue the trial in the three cases against the remaining accused persons.
  • All related miscellaneous petitions are closed.
  • The registry is instructed to incorporate the proper cause title for all cases and issue the order copy.

Topics: Loan Fraud, Judicial Review