Kerala HC Questions Cheating Allegations in Fashion Gold Case as Complainants May Be Shareholders

The Kerala High Court questioned whether cheating charges under Section 420 of the Indian Penal Code could stand if complainants in the Fashion Gold case were shareholders of the accused companies.

The Court noted that shareholders are only entitled to dividends, which are at the company's discretion, and non-payment cannot amount to cheating.

The case involves allegations of siphoning over ₹20 crores and has multiple FIRs based on complaints, with the ED involved. The accused, former MLA M.C. Kamarudheen and business partner T.K. Pookoya Thangal submitted documents proving shareholding. 

The Court has allowed time for verification, with further arguments to follow.

[M.C. Kamarudheen v State of Kerala and connected cases]