Actor Dharmendra’s Cheating Case Settled as Businessman Withdraws Complaint

A cheating case filed against veteran Bollywood actor Dharmendra and two others has been settled amicably, with the complainant, a Delhi-based businessman, withdrawing his case. The dispute was related to the Garam Dharam Dhaba franchise, and after a prolonged legal battle, both parties have reached a resolution.

The case had been under review at Delhi’s Patiala House Court, where summons were issued against Dharmendra and two co-accused on December 5, 2024. However, following negotiations and legal proceedings, the complainant formally withdrew the complaint, bringing the matter to a close.

Case Background: Allegations of Fraudulent Investment Promise

The legal dispute began when businessman Sushil Kumar filed a complaint, alleging that he was induced to invest in a Garam Dharam Dhaba franchise under false promises. According to the complaint:

• In April 2018, co-accused individuals allegedly approached Sushil Kumar on behalf of Dharmendra with an offer to open a franchise of Garam Dharam Dhaba along NH-24/NH-9 in Uttar Pradesh.
• He was told that the existing outlets at Connaught Place, New Delhi, and Murthal, Haryana, were generating a monthly turnover of ₹70-80 lakh.
• Kumar was promised 7% assured profits on his ₹41 lakh investment.
• The complainant claimed he was later asked to increase his investment to ₹63 lakh plus tax and arrange land for the business.
• A letter of intent was signed on September 22, 2018, and an initial cheque of ₹17.70 lakh was handed over and encashed.

Following these transactions, the complainant purchased land in Gajraula, UP, on November 2, 2018, and repeatedly asked for further developments from the accused. However, he alleged that:

• The accused never inspected the purchased land.
• They did not take further action to start the franchise.
• Despite multiple follow-ups, he received no response, leading to financial losses.
• He also claimed that he was threatened when he continued to pursue the matter.

Legal Proceedings: Summons, Police Investigation & Case Withdrawal

Summons Issued Against Dharmendra

Following the complaint, Judicial Magistrate First Class Yashdeep Chahal issued summons on December 5, 2024, against:

1. Dharmendra (Dharam Singh Deol)
2. Two other accused business associates

The court held that the evidence on record prima facie indicated that the accused induced the complainant with a fraudulent investment offer. Based on this, summons were issued under Section 420 (Cheating), Section 120B (Criminal Conspiracy), and Section 34 (Common Intention) of the IPC. Additionally, the co-accused faced charges of criminal intimidation under Section 506 IPC.

Police Investigation: Breach of Contract, Not Criminal Offense

During an inquiry, Delhi Police found that the case was a civil dispute rather than a criminal matter.

• The co-accused admitted to signing the letter of intent but claimed they were still willing to offer the franchise.
• The complainant, however, demanded a refund instead of a franchise, leading to the dispute.
• The police concluded that no cognizable offense was committed, stating it was a matter of contractual breach rather than criminal fraud.

Settlement & Case Withdrawal

During a sessions court hearing on February 6, 2025, the parties informed the court that they had reached an amicable settlement. The complainant, Sushil Kumar, agreed to withdraw his complaint before the trial court.

• On February 10, 2025, an application was submitted to formally withdraw the case.
• By February 18, 2025, the case was officially compounded (resolved through settlement), and on February 20, 2025, the revision petition was withdrawn.

Implications of the Settlement

With the withdrawal of the complaint, the criminal proceedings against Dharmendra and the co-accused have come to an end. This means:

• No further legal action will be pursued against the actor or his associates.
• The franchise dispute has been resolved outside the court.
• The decision reinforces the importance of due diligence in business dealings, especially in franchise agreements.

End of Legal Battle for Dharmendra

The case, which initially raised serious allegations of cheating, has now ended in an out-of-court settlement, with both parties resolving their differences. While contractual disputes in business dealings are common, this case highlights the need for transparency and legal safeguards when entering into financial agreements.

For Dharmendra, this legal settlement means no further legal hurdles, allowing him to move forward without the shadow of litigation. For investors, it serves as a cautionary tale, emphasizing the need for clear legal documentation and due diligence before making financial commitments in franchise businesses.