[Cites 11, Cited by 0]
Jharkhand High Court
Madhav Khandelwal vs The State Of Jharkhand on 9 March, 2026
Author: Gautam Kumar Choudhary
Bench: Gautam Kumar Choudhary
2026:JHHC:6122
IN THE HIGH COURT OF JHARKHAND AT RANCHI
W.P. (Cr.) No. 246 of 2025
------
Madhav Khandelwal, son of Mohan Lal Khandelwal, resident of Main Road,
Chatra, P.O. & P.S. Chatra, District Chatra, Jharkhand
.... .... .... Petitioner
Versus
The State of Jharkhand .... .... .... Respondent
CORAM: HON'BLE MR. JUSTICE GAUTAM KUMAR CHOUDHARY
For the Petitioner : Mr. Abhishek Kumar Dubey, Advocate
Mr. Atif Anwar, Advocate
Mr. Harsh Utsav, Advocate
For the State : Ms. Nirupama, A.C. to Sr. S.C. II
For the Informant : Mr. Arun Kumar Dubey, Advocate
Mr. Rahul Dev, Advocate
------
Order No.06 / Dated : 09.03.2026
Instant writ petition is filed under Article 226 of the Constitution of
India for quashing the FIR in Argora P.S. Case No.24 of 2025 lodged under
Sections 406, 420, 467, 468, 469, 471, 500, 501/ 120B of the Indian Penal Code.
2. The prosecution case, in brief as disclosed in the FIR, is that the
immovable property mortgaged by the informant for getting loan from
Union Bank of India was auction sold in 2024. E-auction notice was given in
daily newspaper on 29.10.2024 with respect to two properties. The present
petitioner purchased the property no.1 as detailed in Annexure 2 in the e-
auction notice for a value of Rs.44,64,230/- and the sale certificate was
issued regarding it by the authorized officer of the Bank on 14.01.2025.
3. The case of the informant, who is original owner of the property
no.1, is that this petitioner in collusion with the Bank officials mainly the
panel valuer and other Bank officials, purchased the mortgaged property on
a depreciated value.
4. It is submitted by the learned counsel on behalf of petitioner that he
was a bona fide purchaser of the property in an e-auction sale which was
conducted as per the procedure established by law. In participating in the e-
auction, he deposited 10% of the earnest money of Rs.4,13,355/- and as
highest bidder, was declared successful and H-1 bidder on 30.10.2024. After
2026:JHHC:6122
paying the full consideration amount on 12.11.2024, the sale certificate was
issued.
5. Informant had approached this Court in W.P. (C) Filing No.13350 of
2024 for restraining the respondents in giving effect to the auction held on
29.10.2024. The said writ petition was disposed of with a direction to
dispose of the application filed by the informant under Section 17 of the
SARFAESI Act. The Debt Recovery Tribunal heard S.A. No.88 of 2024 and
after hearing the parties, directed the Bank to conduct the auction in which
the property was purchased by this petitioner. It was held by the Debt
Recovery Tribunal that there was no error in valuation of the property.
6. Considering these factual aspects, the order passed by the Debt
Recovery Tribunal has attained finality and has not been challenged before
any higher forum. Considering these factual aspects, the co-ordinate Bench
of this Court in W.P. (Cr.) No.158 of 2025 and W.P. (Cr.) No.159 of 2025,
quashed the FIR qua against the Bankers.
7. A counter affidavit has been filed on behalf of the informant and the
specific stand has been taken is that there was an intentional undervaluation
of the land in question by the panel valuer, Arvind Kumar of Union Bank of
India. It is argued by the learned counsel that Arvind Kumar had valued the
same plot of land at the rate Rs.1,50,000/- in 2017 for a total area of 255.25
decimals of land which will be apparent from Annexure A series to the
counter affidavit. However, after more than seven years, the same plot of
land has been valued at the rate Rs.75,000/-. It is further submitted that the
petitioner was the sole bidder in the e-auction.
8. Having considered the submissions advanced on behalf of both
sides, it is apparent that the criminal law has been set into motion by
lodging FIR against this petitioner on the main allegation that he had
purchased the property put on auction by the Union Bank of India. It is
alleged that the said property was undervalued and the petitioner had
colluded with the Bank officials in its undervaluation.
9. Quashing of an FIR in exercise of writ jurisdiction, is done only in
exceptional cases when the FIR itself does not disclose an offence against the
2026:JHHC:6122
petitioner. The matter for consideration in the present case is whether the
offence alleged of fraud, criminal breach of trust or forgery is made out
against this petitioner. From the plain reading of FIR and the materials on
record, the principal charge of undervaluation is not against this petitioner
and in any case, the valuation of property was done before he participated
in the e-auction. The charge is confined to the fact that he had entered into a
criminal conspiracy with the Bank officials in undervaluation of the
property. As noted above, the valuation of property was challenged before
this Court wherein specific direction was given in W.P. (C) Filing No.13350
of 2024 vide order dated 17.12.2025 to pursue the remedy under Section 17
of the SARFAESI Act before the Debt Recovery Tribunal, Ranchi. The Debt
Recovery Tribunal, Ranchi dismissed the petition of the informant in S.A.
No.88 of 2024 affirming the valuation of the property vide order dated
10.01.2025. This order attained finality.
10. After that, the present case was lodged on 01.02.2025 with the same
allegation of undervaluation. The FIR as stated above, has already been
quashed qua the two of the Bank officials. Under the circumstance, this
Court is of the view that no offence under Section 420 of the Indian Penal
Code of fraud or forgery is made out on the basis of the averments made in
the FIR against this petitioner. It will be a misuse of process of permit the
continuation of the FIR against the petitioner, who is an auction purchaser
and the auction has not been set aside by any competent court.
11. Under the circumstance, FIR stands quashed qua the petitioner.
The writ petition is according, allowed. Pending Interlocutory
Application, if any, stands disposed of.
(Gautam Kumar Choudhary, J.)
Anit
Uploaded
09.03.2026
