The Delhi High Court has refused to quash criminal proceedings against Supertech chairman and managing director Ram Kishor Arora and other executives in a case related to the Hill Town residential project in Sohna, Haryana. The proceedings involve allegations of cheating, criminal breach of trust, diversion of funds, discontinuance of pre-EMI payments and failure to hand over flats within the promised timeline.
Justice Madhu Jain upheld a 2025 order of the trial court taking cognizance of the criminal charges against the company’s senior officers. The High Court observed that the case could not be viewed solely as a dispute arising from delayed possession of residential units.
According to the court, the allegations also concern the manner in which transactions were allegedly structured, representations made to homebuyers and the continued collection of funds from buyers. Whether these circumstances establish dishonest intention from the beginning will have to be determined after evidence is presented during the proceedings.
The court said it could not, at this stage, conclude that the allegations were plainly and exclusively civil in nature. As a result, the continuation of criminal proceedings could not be treated as an abuse of the legal process merely because the transactions also involved contractual obligations between the developer and homebuyers.
The High Court further noted that where allegations, taken at face value, disclose circumstances requiring investigation and adjudication regarding alleged inducement, receipt and utilisation of funds, criminal proceedings cannot be quashed simply because the dispute has a contractual element.
A significant aspect of the court’s observations relates to the allegation of criminal conspiracy. The High Court said that the existence of a conspiracy generally has to be inferred from the conduct of the parties and the circumstances brought on record, as direct evidence of an agreement between accused persons is seldom available.
Whether the available material ultimately establishes a meeting of minds between the accused persons is a matter that must be examined through appreciation of evidence during the trial. The High Court said such questions cannot ordinarily be conclusively determined in proceedings seeking the quashing of a criminal case.
The ruling means that the criminal proceedings against Arora and the other Supertech executives in connection with the Hill Town project will continue. The court has left the final determination of the allegations, including whether there was dishonest intention or a criminal conspiracy, to be decided on the basis of evidence presented before the appropriate court.
The case highlights the distinction courts may draw between a contractual dispute and allegations that disclose a possible criminal offence. While delayed possession or non-performance of contractual obligations may form part of a civil dispute, allegations concerning inducement, representations made to buyers and the handling of funds can require further judicial examination when criminal elements are alleged.
The High Court’s decision does not amount to a finding of guilt against the accused. Instead, it allows the criminal case to proceed so that the allegations and evidence can be examined during the judicial process. The original report was published on September 10, 2026.
