Filmmaker Ram Gopal Varma Acquitted in Cheque Bouncing Case After Settlement
- William John
- Sep 24
- 2 min read
Introduction
Mumbai’s Dindoshi Sessions Court has acquitted filmmaker Ram Gopal Varma in a cheque bouncing case, overturning his earlier conviction. The case was resolved after Varma paid ₹3 lakh to the complainant company through a Lok Adalat settlement.
Background of the Case
The dispute dates back to 2018, when Shree, a supplier of hard disks, alleged that Varma’s production company failed to honour payments.
Tax invoices amounting to ₹2,38,220 were issued between February and March 2018.
Cheques issued against these invoices were dishonoured, prompting Shree to file a legal complaint under Section 138 of the Negotiable Instruments Act.
Trial and Conviction
In January 2025, a Magistrate court in Andheri convicted Varma and sentenced him to three months’ simple imprisonment for cheque dishonour.
Varma denied authorising any payments or cheques, but the court found sufficient documentary evidence, including invoices and correspondence, to uphold the conviction.
Acquittal Through Settlement
Following the conviction, Varma appealed to the Dindoshi Sessions Court.
Initially, his bail plea was rejected, and an arrest warrant was issued.
Subsequently, Varma opted for settlement via Lok Adalat, paying ₹3 lakh to the complainant company.
The Sessions Court accepted the Lok Adalat settlement, set aside the conviction, and acquitted Varma.
Significance
Legal Closure: The acquittal ends a long-standing legal dispute dating back to 2018.
Alternative Dispute Resolution: The case highlights the effectiveness of Lok Adalat in resolving civil and financial disputes efficiently.
Industry Attention: As a high-profile filmmaker, Varma’s acquittal draws attention to financial and contractual diligence in the film industry.
Conclusion
The acquittal of Ram Gopal Varma demonstrates how legal settlements and alternative dispute resolution mechanisms can provide closure in financial disputes. The filmmaker is now free of the legal burden related to the cheque bouncing case, marking the end of a seven-year-old dispute.
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