2016 demonetisation — why a Delhi woman was acquitted in a Rs 6 lakh cheque bounce case
The trial court said it is “irreconcilable” that the complainant in the case could advance a large cash loan just weeks after declining a larger request.
The court noted that the complainant in the case claimed the accused initially approached her in November 2016 seeking a Rs 11 lakh loan, but she said she didn’t have such a huge amount then.
(Image generated via AI)
Citing the 2016 demonetisation drive, a Delhi court acquitted a woman accused in a Rs 6 lakh cheque bounce case.
The court noted that the complainant in the case claimed the accused initially approached her in November 2016 seeking a Rs 11 lakh loan, but she said she didn’t have such a huge amount then.
“…. however, within one month, she was able to advance such an amount [Rs 6 lakh] to the accused, which itself creates a doubt upon her version… coupled with the fact that there was demonetisation at that time in India…,” said Judicial Magistrate First Class Anmol Nohria of Karkardooma Court in his judgment dated April 4.
The court also said it “cannot reconcile” with the fact that when the complainant had such a huge amount of money with her, in cash, during demonetisation, “why would she not advance the complete demand of Rs 11,00,000 at the very first instance and then advance Rs 6,00,000 to the accused…”
The court also said the complainant had not produced any eyewitness to the transaction.
On November 8, 2016, the government announced the demonetisation of all Rs 500 and Rs 1,000 banknotes.
Around this time, Priya (the accused) had allegedly approached Neeru Luthra (the complainant) for a loan of 11 lakh for a period of one year. Both women were residents of Laxmi Nagar and had lived in the same neighborhood for 17 years.
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While Luthra initially declined to give her the money, she later allegedly gave her Rs 6 lakh from her own savings in currency notes of Rs 500 and Rs 1,000.
As per the complainant, Priya handed over a cheque of Rs 6 lakh when the time for repayment came. But on encashment, this cheque was returned unpaid, with the remarks “funds insufficient”.
On January 12, 2018, the complainant sent a legal notice to Priya, which she responded to but no payment was allegedly made. After this, a case was filed under Section 138 of the Negotiable Instruments Act (dishonour of cheque for insufficiency, etc., of funds in the account).
Priya, who was represented by advocate Manish Bhadauria in court, had argued that the transaction mentioned by Luthra didn’t exist and that no cheque was issued to the complainant.
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Luthra had told the court that the money she allegedly handed over to Priya was from the earnings of her husband and son’s gold business.
Pointing to contradictions in the complainant’s statements, the court said, “In her cross examination, she improvised her version and said her husband did not have regular earnings in… 2016… However, in her evidence affidavit, she is silent upon the same… and in her complaint, it has been stated that the money was advanced from her own savings.”
Nirbhay Thakur is a Senior Correspondent with The Indian Express who primarily covers district courts in Delhi and has reported on the trials of many high-profile cases since 2023.
Professional Background
Education: Nirbhay is an economics graduate from Delhi University.
Beats: His reporting spans the trial courts, and he occasionally interviews ambassadors and has a keen interest in doing data stories.
Specializations: He has a specific interest in data stories related to courts.
Core Strength: Nirbhay is known for tracking long-running legal sagas and providing meticulous updates on high-profile criminal trials.
Recent notable articles
In 2025, he has written long form articles and two investigations. Along with breaking many court stories, he has also done various exclusive stories.
1) A long form on Surender Koli, accused in the Nithari serial killings of 2006. He was acquitted after spending 2 decades in jail. was a branded man. Deemed the “cannibal" who allegedly lured children to his employer’s house in Noida, murdered them, and “ate their flesh” – his actions cited were cited as evidence of human depravity at its worst. However, the SC acquitted him finding various lapses in the investigation. The Indian Express spoke to his lawyers and traced the 2 decades journey.
2) For decades, the Jawaharlal Nehru University (JNU) has been at the forefront of the Government’s national rankings, placed at No. 2 over the past two years alone. It has also been the crucible of campus activism, its protests often spilling into national debates, its student leaders going on to become the faces and voices of political parties of all hues and thoughts. The Indian Express looked at all court cases spanning over two decades and did an investigation.
3) Investigation on the 700 Delhi riots cases. The Indian Express found that in 17 of 93 acquittals (which amounted to 85% of the decided cases) in Delhi riots cases, courts red-flag ‘fabricated’ evidence and pulled up the police.
Signature Style
Nirbhay’s writing is characterized by its procedural depth. He excels at summarizing 400-page chargesheets and complex court orders into digestible news for the general public.
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