Virender Sehwag's Brother Arrested related to Rs 7 Crore Fraud - What is the Reason? Explained

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Vinod Sehwag, brother of former Indian cricketer Virender Sehwag, was arrested by Chandigarh Police in connection with a financial fraud.

The case involves Jalta Food and Beverages Company, where Vinod Sehwag, along with co-directors Vishnu Mittal and Sudhir Malhotra, were charged under the Negotiable Instruments Act.

Why is Virender Sehwag's brother arrested?

Krishna Mohan, owner of Shri Naina Plastic Factory in Baddi, Himachal Pradesh, alleged that Jalta Food and Beverages purchased goods from his factory and issued a Rs 7 crore cheque for payment.

But Vinod Sehwag, the owner of the Jalta Food and Beverages, issued the cheque which bounced. Upon depositing the cheque at Oriental Bank of Commerce in Manimajra, it was returned due to insufficient funds. Following non-appearance in court hearings, all three directors were declared fugitives in 2022, and a police case was filed in September 2023.

Vinod Sehwag has since been taken into judicial custody and has filed a bail application, with the hearing scheduled for March 10. Notably, he faces at least 174 cheque bounce cases and has sought bail in 138 of them.

What is a Cheque Bounce?

A cheque bounce occurs when a bank refuses to honor a cheque, typically due to insufficient funds in the issuer's account, a mismatch in signatures, or other discrepancies. In India, such incidents are addressed under the Negotiable Instruments Act, 1881, specifically Section 138, which deals with dishonor of cheques for insufficiency of funds.

In the case of Vinod Sehwag and his co-directors, the alleged issuance of a Rs 7 crore cheque that was dishonored due to insufficient funds led to legal proceedings under the Negotiable Instruments Act. Their subsequent non-appearance in court resulted in them being declared fugitives, culminating in Vinod Sehwag's recent arrest and judicial custody.