Fraud In Metal Scrap Transactions: The Case Of Mr. S And X

Background and Facts

Mr. S, a proprietor in the metal scrap business, encountered A in August 2020. The person X presented himself as a government contractor experienced in logistics. Through oral communication, Mr. S was impressed by his credentials and commitment to timelines and agreed to do business with X.

Due to the pandemic, Mr. S’s business faced a significant downturn. In March 2021,  X offered a potential business opportunity to mitigate the pandemic-induced losses. X claimed to have access to metal scrap from the Public Works Department (PWD) available at a reasonable price. Mr. S agreed to purchase the scrap and entrusted X with the transportation.

The next day, they signed a Memorandum of Understanding (MOU), and Mr. S handed over five lakh rupees as an advance for the purchase and delivery. Despite receiving the payment, X continuously delayed the delivery, raising Mr. S’s suspicion. Realizing he had been duped, Mr S demanded X to honour the agreement.

X had previously issued cheques amounting to ten lakh rupees to Mr. S and assured an additional 10% payment. However, when Mr S deposited the cheques, they were dishonoured. Further attempts to contact X were futile as he became untraceable.

Legal Proceedings

Following these events, Mr. S filed a chargesheet against X under Section 173 of the Criminal Procedure Code (CrPC) for cheating under Sections 419 and 420 of the Indian Penal Code (IPC).

Mr. S’s case of fraud in metal scrap transactions was diligently represented by Rajesh Kshetry, who put forth significant efforts in the pursuit of justice. As a result of Rajesh Kshetry’s dedicated advocacy, X ultimately surrendered and was granted anticipatory bail under Section 438 of the CrPC.

Conclusion

This case underscores the vulnerabilities businesses face in transactions based on trust and oral agreements. It highlights the importance of due diligence and securing legal documentation in business dealings. The proactive legal intervention by Rajesh Kshetry was crucial in addressing the fraud and attempting to bring X to justice.

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