Court summons Bollywood veteran actor Dharmendra in 'Garam Dharam' franchise fraud case

Delhi entrepreneur Sushil Kumar filed a complaint alleging he was misled into purchasing the 'Garam Dharam Dhaba' franchise, prompting Judicial Magistrate (First Class) Yashdeep Chahal to issue summons to Bollywood legendary star Dharam Singh Deol aka Dharmendra.

Earlier, the co-accused approached Kumar in April 2018 on behalf of Deol with an offer to open a Garam Dharam Dhaba franchise on NH-24/NH-9 in Uttar Pradesh.

The complainant was allegedly persuaded to invest in the franchise under the false pretense that the restaurant locations in Connaught Place, Delhi, and Murthal, Haryana, were generating between ₹70 lakh and ₹80 lakh per month.

With the promise of a 7% return on his investment, Kumar was told he needed to invest ₹41 lakh. He was also promised full support for establishing the franchise in Uttar Pradesh.

The complainant claims that after several meetings and emails with the co-accused about the franchise, he was asked to secure land for the business and invest ₹63 lakh plus tax.

On Sep 22, 2018, a letter of intent outlining the payment terms and business details was signed, and a cheque for ₹17.70 lakh was paid and cashed by the complainant.

Despite repeated efforts, the respondents never met with the complainant or inspected the land after its purchase in Nov 2018.

“The evidence on record prima facie indicates that the accused persons induced the complainant in furtherance of their common intent, and the ingredients of the offence of cheating are duly disclosed,” said the judge in an order passed on Dec 5.

“Accordingly, let the accused persons numbered 1 (Dharam Singh Deol), 2, and 3 be summoned for the commission of offences under Section 420, 120B read with Section 34 of the IPC. Additionally, let the accused persons numbered 2 and 3 also be summoned for the offence of criminal intimidation under Section 506 of the IPC,” the court ordered.

The next hearing is scheduled for February 20, 2025.

The court emphasized that only a prima facie case should be considered at the summoning stage, and a detailed analysis of the case's merits is not required at this point.

It also noted that the documents, including the letter of intent bearing the Garam Dharam Dhaba logo, clearly indicated that the transaction involved the restaurant and was being managed by the co-accused on behalf of Deol.

On October 9, 2020, the court rejected a request to order the registration of an FIR but acknowledged the complaint and instructed the complainant to provide further evidence.