SC: Clubbing 81 FIRs Can Help Victims; Builder to Pay ₹9.94 Crore in Six Months
The Supreme Court has ordered that 81 FIRs filed against real estate developer Alok Kumar be merged into a single case, stating that clubbing FIRs from the same transaction helps avoid multiple proceedings and serves the larger interest of victims. All past and future FIRs on the same matter will now be treated as statements under Section 161 of the Criminal Procedure Code (CrPC).
A Bench of Justices J.B. Pardiwala and R. Mahadevan referred to the precedent set in Satinder Singh Bhasin v. State of U.P. (2023), noting that keeping the builder in jail indefinitely would not help home buyers recover their money. Instead, a practical approach was needed to facilitate settlements.
Case Background
Kumar, along with his company Agrani Homes, is accused of cheating home buyers and failing to deliver flats. The first FIR was lodged on 11 January 2018 at Shastri Nagar Police Station, Patna, under Sections 420 of the IPC and 138 of the NI Act. Over time, 81 FIRs were registered, with the alleged liability pegged at ₹13.94 crore.
The Patna High Court had earlier refused to merge all FIRs, though it allowed a joint investigation for cases under the Economic Offences Unit. Kumar, in custody since October 2022, then approached the Supreme Court seeking clubbing of FIRs and bail.
Supreme Court’s Directions
The Court noted that Kumar had already deposited ₹4 crore with the Registry and agreed, along with his son, to pay the remaining ₹9.94 crore within six months. He also submitted affidavits detailing his and his companies’ properties, with a bar on selling them without court approval.
The FIRs will now be merged, with the 2018 FIR treated as the main case. Kumar has been granted six months’ temporary bail on the condition that he executes a ₹5 lakh bond, provides one solvent surety, surrenders his passport, appears at Shastri Nagar Police Station every fortnight, and refrains from transferring property without permission.
The Court made it clear that the ₹9.94 crore payment is not a full and final settlement, and the amount will be distributed among home buyers.
Case Title: Alok Kumar v. State of Bihar & Ors
Drafted by: Advocate Varun Singh
