The Karnataka High Court has temporarily stayed investigation into criminal proceedings against Rishabh Telang, co-founder of Cult.fit, involving allegations of cheating, forgery, and criminal breach of trust.
The Karnataka High Court on September 28 ordered an interim stay on the investigation against Rishabh Telang, co-founder of the fitness-tech platform Cult.fit, in a criminal case involving allegations of cheating, forgery, and criminal breach of trust. Justice Anant Ramanath Hegde issued the stay pending hearing on September 30, noting that the matter had been substantially argued on merits.
Allegations and Legal Response
The case, filed by a private complainant, invokes BNS provisions corresponding to IPC 420 (cheating), 467 (forgery), and 406 (criminal breach of trust). The investigation, being conducted by state authorities, allegedly involves financial misappropriation in corporate transactions tied to Cult.fit or related entities. Telang approached the High Court under Section 482 BNSS (inherent powers) to quash the FIR or, alternatively, seek protection from arrest and investigation.
While the full grounds remain forthcoming, the stay suggests judicial caution regarding the initiation or scope of criminal proceedings in commercial disputes. The Court’s willingness to stay the probe—even interim—indicates a leaning towards protecting individuals from undue harassment in cases potentially having civil origins.
Precedent on Criminalization of Business Disputes
This order fits within a growing body of jurisprudence discouraging the use of criminal process in contractual or investor disagreements. The judiciary has repeatedly held that mere failure to return funds or unmet business expectations does not automatically constitute cheating or fraud under BNS 318(4). Practitioners must consider this trend when advising on corporate disputes that risk escalation into criminal complaints.
Citations
- Rishabh Telang v. State of Karnataka
