BUDGAM, June 1, 2026 – In a significant judgment, a court in Budgam has convicted a property broker for cheating a retired government employee of ₹1.04 crore and subsequently issuing bounced cheques, sentencing him to one year of simple imprisonment and imposing a fine of over ₹1.87 crore.

Chief Judicial Magistrate Abdul Bari found Ghulam Mohi-ud-din Dar, a resident of Samson Khanshaib in Budgam, guilty under Section 138 of the Negotiable Instruments Act for issuing two cheques totaling ₹1.04 crore that were dishonoured due to "insufficient funds."

The case dates back to December 2015 when the complainant, Abdul Rehman Wani, a retired government employee from Goshbugh in Baramullah, agreed to purchase a strip of land measuring 14 kanals and 3 marlas from the accused. The accused allegedly presented himself as the power of attorney holder for the land's owner, a person named Jawhar Lal.

Trusting the accused, Wani paid the entire sale consideration of ₹1.04 crore — partly in cash and partly through bank transfers. The money came from his pensionary benefits, sale of his own agricultural land, and a loan from a friend. However, Wani later discovered that the power of attorney was fake and the accused's name had been manipulated.

When confronted, Dar issued two cheques — one for ₹50 lakh and another for ₹54 lakh — toward repayment of the amount. Both cheques were presented to the J&K Bank branch in Budgam on September 26, 2016, but were returned unpaid with the remark "Funds insufficient."

Despite receiving legal notices, the accused failed to make the payment, forcing Wani to approach the court.

During the trial, Dar claimed that the two cheque leaves had been lost from his pocket while travelling to Srinagar in June 2016. He said he had lodged a police complaint and asked the bank to stop payment. However, the court found his defence unconvincing.

The accused himself admitted in cross-examination that the bank account and signatures on the cheques were his. He could not point out any discrepancy in the handwriting, amount, or dates on the cheques.

The court noted that the bank manager had testified that no written stop-payment application was available in branch records — only a digital entry existed. Moreover, the cheques were dishonoured due to "insufficient funds," not "payment stopped."

The testimonies of the accused's witnesses were described by the court as "vague, inconsistent and lacking in material particulars."

While convicting Dar, the court relied on Supreme Court precedents, noting that once execution of a cheque is admitted, a legal presumption arises that it was issued toward discharge of a liability — a presumption the accused failed to rebut.

The court sentenced Dar to one year of simple imprisonment and imposed a fine of ₹1.87 crore — comprising the cheque amount of ₹1.04 crore plus 6% interest from the date of issuance of the cheques, calculated at ₹83,21,027. If the accused fails to pay the fine within one month after the appeal period, he will face an additional three months in jail.

The accused was immediately forwarded to the Superintendent of Central Jail, Srinagar, to serve his sentence.