The Supreme Court has chosen pragmatism over prolonged incarceration in a case that has left hundreds of homebuyers stranded. In a sweeping order, the Court merged 81 criminal complaints against real estate developer Alok Kumar into one consolidated case and granted him temporary bail for six months, on the condition that he work towards repaying buyers who invested in his stalled projects.
The Bench, comprising Justices J.B. Pardiwala and R. Mahadevan, ruled that when multiple FIRs stem from the same series of transactions, they need not multiply into endless litigation. Instead, the first FIR will serve as the base case, while all subsequent and future complaints on the same issue will be treated as witness statements under Section 161 of the Code of Criminal Procedure.
Kumar, who has been in custody since October 2022, faced mounting allegations of cheating and non-delivery of promised flats through his company, Agrani Homes. The saga began in January 2018, when the first FIR was lodged in Patna’s Shastri Nagar Police Station. Over time, complaints swelled to 81, with liabilities claimed to be nearly ₹14 crore.
The Court pointed out that leaving Kumar behind bars indefinitely would not help buyers recover their dues. “Keeping the petitioner in jail for an indefinite period of time is not going to serve any good purpose, so far as the interest of the home buyers is concerned,” the judges remarked, stressing that resolution—not punishment alone—was the way forward.
Kumar has already deposited ₹4 crore with the Court registry and promised to settle the balance ₹9.94 crore within six months. His properties, along with those of his companies, have been detailed in affidavits, and cannot be sold or transferred without the Court’s nod.
Granting him conditional bail, the Court required him to execute a ₹5 lakh bond with a solvent surety, surrender his passport, appear fortnightly at the Shastri Nagar Police Station, and refrain from transferring any immovable assets without judicial approval.
Importantly, the Court clarified that the ₹9.94 crore deposit would not mark a full and final settlement—it will be distributed among homebuyers while leaving room for further claims.
With this ruling, the Court has sought to strike a balance: freeing a jailed builder not out of leniency, but to ensure that cheated buyers have a realistic chance of seeing their money—or their homes—returned.