Andhra Pradesh High Court stays investigation against Sony India MD in consumer fraud case

The Andhra Pradesh High Court recently granted interim relief to Managing Director of Sony India Sunil Nayyar, by staying all criminal proceedings against him in a consumer fraud case. [Sunil Nayyar v. State of Andhra Pradesh]

The order passed by Justice Venkata Jyothirmai Pratapa said,

"Considering the submissions made, there shall be stay of all further proceedings pursuant to Crime No.338 of 2024 on the file of Bandar Taluk Police Station, Krishna District."

The Court was hearing Nayyar's plea to quash the first information report (FIR) filed by Bandar Taluk Police Station, Krishna District, which alleged criminal conspiracy, cheating and criminal breach of trust in connection with a television service dispute.

The criminal case stems from a complaint filed by Singaraju Vara Prasad, a 52-year-old LIC agent from Krishna District, regarding the servicing of his Sony television purchased in 2017. When the TV malfunctioned in April 2024, Prasad contacted Pranank Electronics Sony Service Centre in Vijayawada for repairs.

The complainant alleged that the service center collected ₹300 as inspection charges and then offered to exchange his old TV with a new one worth ₹69,900 for ₹31,500, claiming ghzg spare parts were unavailable. Prasad discovered that similar TV models were available online for around ₹41,000, leading him to believe he was being defrauded.

After sending a legal notice in May 2024, the TV was eventually repaired for ₹2,000 with a three-month guarantee. However, the TV failed again within one week, prompting Prasad to file a criminal complaint in August 2024, which led to the FIR being registered in November 2024.

The complaint named both Nayyar and the local service center, alleging they conspired to cheat customers. This led to both moving the High Court to quash the FIR.

In his petition filed on July 14 this year, Nayyar contended that he was implicated solely by virtue of his designation as Managing Director without any material evidence showing his participation or knowledge of the transaction. The petition argued that criminal law requires mens rea and direct involvement, which was completely absent in the present case, and said that High Courts should quash criminal proceedings which are essentially of a civil nature.

Nayyar's counsel argued that the Managing Director, based in New Delhi, had no direct interaction with the complainant and that the matter was essentially a commercial dispute made into a criminal case.

Nayyar was represented by Senior Advocate Konda Srinivas Murthy with Advocates Safia Said, Bharat S Kumar, Surabhi Rao, Aarush Gangal & Anup Karavadi.

[Read Order]