In a ruling that settles a long-running procedural debate, the Supreme Court of India has clarified how police and courts should deal with large-scale cheating cases involving hundreds or even thousands of victims. The court set aside key findings of the Delhi High Court and upheld the legality of registering a single FIR when multiple acts of cheating stem from one criminal conspiracy.
Background of the Case
The appeal arose from a sensational money-doubling scam investigated by Delhi Police’s Economic Offences Wing. In 2009, an FIR was registered after a complainant alleged that the accused promised to triple investments by invoking “divine powers.”
During the probe, police found that 1,852 investors had allegedly been cheated of nearly ₹46.40 crore. Instead of registering separate FIRs for each investor, the police clubbed all complaints with the first FIR and treated the remaining victims as witnesses.
This approach led a Delhi trial judge to refer three legal questions to the Delhi High Court-chiefly, whether every deposit amounted to a separate offence requiring a separate FIR.
In 2019, the Delhi High Court answered the reference by holding that:
- Each investor’s deposit was a separate transaction,
- Separate FIRs and charge sheets were mandatory, and
- Clubbing could only be considered later, at the stage of framing charges.
The State challenged this interpretation before the Supreme Court, arguing that it would create chaos in complex fraud investigations.
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What the Supreme Court Examined
Hearing the appeal, the bench closely examined whether the alleged acts of cheating formed part of the “same transaction” under criminal procedure law.
The court revisited settled principles-unity of purpose, continuity of action, and common design-to determine when multiple acts can legally be investigated together.
The bench also took note of several earlier rulings where multiple FIRs were merged to avoid unnecessary duplication of proceedings.
Court’s Observations
The Supreme Court found fault with the High Court’s rigid approach. It observed that the trial court’s reference itself was premature, as the investigation was still ongoing when the questions were raised.
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Importantly, the bench noted:
“Where a criminal conspiracy is alleged, leading to multiple acts of cheating, the registration of one FIR and treating other complaints as statements is a legally permissible course.”
The judges emphasized that police are not required to mechanically register separate FIRs if the facts reveal a single conspiracy operating through repeated acts.
Addressing concerns about victims being reduced to mere witnesses, the court clarified that their legal remedies remain intact.
It observed that even when multiple complaints are treated as statements in one FIR, affected persons can still file protest petitions if the police file a closure report or if the accused are discharged.
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The Final Decision
Setting aside the Delhi High Court’s answers on two crucial questions, the Supreme Court held that:
- Clubbing of complaints into one FIR is permissible when the offences arise from the same conspiracy,
- The decision on whether offences form part of the same transaction must ultimately be taken by the trial court after investigation, and
- Sentencing will follow established legal provisions depending on the findings at trial.
Allowing the State’s appeal, the bench concluded the matter on January 6, 2026, restoring clarity on how large-scale financial fraud cases should be investigated and tried.
Case Title: State (NCT of Delhi) vs. Khimji Bhai Jadeja
Case No.: Criminal Appeal arising out of SLP (Criminal) No. 9198 of 2019
Decision Date: January 6, 2026
