A Mumbai sessions court has acquitted filmmaker Ram Gopal Varma in a 2018 cheque bounce case after the matter was settled between him and the complainant company through a Lok Adalat. The acquittal came earlier this month, following a "compromise memo" filed in court, outlining the terms of their settlement.
The case began when Varma's firm issued a cheque for ₹2, 38,220 to a company that supplied hard disks. However, the cheque bounced due to insufficient funds. Despite issuing a second cheque, it too was dishonoured because the payment was stopped by the drawer.
The company then pursued legal action against Varma. Earlier, a judicial magistrate had found Varma guilty under the Negotiable Instruments Act and sentenced him to three months' imprisonment, ordering him to pay ₹3, 72,219 to the complainant within three months.
Varma had appealed the magistrate's ruling, but both parties later decided to settle the matter amicably through the Lok Adalat. The session’s court subsequently acquitted Varma and disposed of his appeal. Ram Gopal Varma is known for directing acclaimed films like "Satya," "Rangeela," "Company," and "Sarkar".