Ram Gopal Varma acquitted in 2018 cheque bounce case

Mumbai | A Mumbai court has acquitted filmmaker Ram Gopal Varma in a 2018 cheque bounce case, after the matter was settled between him and the complainant company through a Lok Adalat.

The company filed a cheque bounce complaint against Varma's firm in 2018.

Varma was acquitted earlier this month in view of the "compromise memo", as per the court order.

A compromise memo (or memorandum of compromise) is a written agreement between parties in a legal dispute that outlines the terms of their settlement, filed in court to be recorded and acted upon by the judge.

Earlier, a judicial magistrate (at Andheri) on January 21 found Varma guilty under the Negotiable Instruments Act.

The magistrate sentenced him to three months' imprisonment and ordered him to pay Rs 3,72,219 to the complainant within three months.

Aggrieved by the magistrate's ruling, Varma had filed a criminal appeal before a sessions court (Dindoshi).

However, in the previous hearing, both the filmmaker and the complainant company told the court that they had decided to amicably settle the matter through the Lok Adalat.

Thus, after the matter was settled through the Lok Adalat, the sessions court acquitted Varma and disposed of his appeal.

According to the complainant's lawyer, Rajesh Kumar Patel, the company had been supplying hard disks for several years. Based on Varma's request, it provided hard disks between February and March 2018, generating tax invoices amounting to Rs 2,38,220.

Varma issued a cheque on June 1, 2018, but it was dishonoured due to insufficient funds. After being informed, his firm issued a second cheque for the same amount, which also bounced because the payment was stopped by the drawer.

With no other option, the company pursued legal action.

Varma is known for directing films like "Satya", "Rangeela", "Company" and "Sarkar", among others.