Karnataka Education Minister Faces Jail In Cheque Bounce Case; ₹6 Cr Fine Slapped

Karnataka’s school education minister Madhu Bangarappa is in trouble and may lose his post as a special court has convicted him over a bounced cheque. He has been ordered to pay a fine of Rs 6,96,70,000, failing which, he will be required to undergo simple imprisonment for six months.

The Bengaluru Special Courts for People's Representatives court held M/s Akash Audio-Video Private Limited, Bengaluru, and its director Madhu Bangarappa guilty under Section 138 of the Negotiable Instruments Act.

Special judge J Preeth on December 27 ordered that Bangarappa will have to pay the fine amount to the complainant, M/s Rajesh Exports Limited, Bengaluru, and Rs 10,000 to the state.

The case was heard by the special court set up for cases filed against sitting and former MPs/MLAs in Karnataka. Bangarappa had earlier deposited Rs 50 lakh in court and on December 26, 2023, the day before the verdict, filed an undertaking that he would pay the remaining amount by January 30, 2024.

However, declining his request, the special judge noted that accused no. 2 (Madhu Bangarappa) was in the habit of offering such undertakings without any compliance. “As such, this court is declined to take the said undertaking into consideration,” the judge said in her order.

Akash Audio-Video had availed an Inter Corporate Deposit of Rs 6 crore from the complainant company. As the director of Akash Audio, Bangarappa had executed a declaration, confirming the receipt of the deposit and issuance of a cheque dated July 16, 2011, in favour of Rajesh Exports, with 10% interest as agreed upon.

Bangarappa Approached Karnataka HC To Quash The Case

However, when the cheque was dishonoured due to insufficient funds, Rajesh Exports filed a petition for recovery of the amount. Bangarappa had earlier approached the High Court to quash the case, but his petition was dismissed.

Agencies add that BJP State President B.Y. Vijayendra decalred "It's a black mark on the dignity of the government and the sanctity of education. Bangarappa should tender his resignation, taking moral responsibility.

Otherwise, Chief Minister Siddaramaiah should seek his resignation," he said. BJP MLA Basanagouda Patil Yatnal wondered, "Where will he take the education department? According to sources, he is not able to read or write Kannada."