Chintamani Cooperative Society Fined ₹1.22 Crore in Check Bounce Case

The Additional Chief Metropolitan Magistrate (ACMM) court in Bengaluru has levied a fine of ₹1.22 crore on the Taluk Agricultural Produce Cooperative Marketing Society (TAPCMS) of Chintamani due to a check bounce incident.

The Indian Farmers Fertiliser Cooperative (IFFCO) had provided 200 tons of fertilizer to TAPCMS. However, the cooperative failed to settle payments on time, resulting in a bounced check for ₹61.25 lakh issued to IFFCO.

Despite several reminders from IFFCO, TAPCMS did not respond, prompting IFFCO to file a lawsuit in the ACMM court for the outstanding payment.

Judge C.N. Veereshkumar, presiding over the case, imposed the fine, mandating that ₹1.20 crore be paid to IFFCO. The court warned that if TAPCMS does not comply, its president, Chandrappa, and secretary, N. Venkateshappa, could face one year in prison.

In the ruling, Judge Veereshkumar remarked, “Showing leniency to the guilty would be an injustice to the innocent. Imposing a fine equal to the check amount would be unfair to the complainant. Therefore, a fine double the check amount has been imposed.”

This judgment underscores the gravity of check bounce cases and the necessity of fulfilling financial obligations in business dealings.