Man sentenced to 3 months’ imprisonment, fined Rs 24 lakh for loan default

A court in Thane district, Maharashtra, has handed down a sentence of three months of simple imprisonment and levied a substantial fine of Rs 24 lakh on Suraj Bhagwat Londhe for his failure to repay a loan. Additional Chief Judicial Magistrate J R Mulani, presiding over the case, declared Londhe guilty of offences under the Negotiable Instruments Act, 1881, in a verdict delivered.
The judge further decreed that a significant portion of the imposed fine, specifically Rs 23.75 lakh, be disbursed as compensation to the complainant, Manda Asarama Bahir, a resident of Mira Bhayander. The case revolves around Londhe’s borrowing of a friendly loan amounting to Rs 12 lakh from the complainant in December 2017.
Despite repeated reminders urging him to fulfill his loan repayment, Londhe ultimately issued a check that was dishonored by the bank due to insufficient funds. The complainant, frustrated by the lack of reimbursement, sent notices to Londhe, which went unanswered.
Upon examining the facts of the case, the judge concluded that the accused had committed an offense punishable under Section 138 (dishonoring of a check due to insufficient funds) of the Negotiable Instrument Act, 1881. Given that the transaction was based on a friendly loan agreement, and the complainant had endured financial losses for over five years, the judge determined that the fine must be equal to twice the amount of the original Rs 12 lakh check, resulting in a substantial fine of Rs 24 lakh.