Real estate agent in jail for over 7 years in consumer cases moves Supreme Court for temporary release

The Supreme Court on Tuesday issued notice to the State of Telangana on a plea seeking the temporary release of a real estate agent who has been in prison for the past seven years in connection with multiple cases filed by plot buyers in Telangana [Yellapragadha Prabhakara Rao Vs. Devulapalli Sri Karthik & Ors.]

An appeal filed by convict Yellapragadha Prabhakara Rao, challenging a consumer forum’s order sentencing him to two years’ consecutive imprisonment in 30 cases, is currently pending before the top court.

His appeal states that he has been sentenced to an “effective incarceration that may extend to nearly 60 years.”

Today, a bench of Justice SVN Bhatti and Justice SC Sharma issued a notice to Telangana government as well as the original complainant on Rao's plea seeking a parole of two months to undergo an eye surgery.

The Court also ordered the authorities to apprise it about the latest medical status of Rao, who has said that he suffers from various old-age ailments.

The matter will be heard next week.

In September 2017, Rao was sentenced to two years imprisonment under Section 27 of the Consumer Protection Act in about 30 consumer cases related to the sale of residential plots.

The complainants had alleged that they paid various amounts to Rao for purchase of plots in a residential scheme advertised by him. However, it was later found that the land was stuck in civil disputes and the layout also was not approved by the competent authority.

Between 2015 and 2017, the consumer forum in Ranga Reddy passed several orders asking Rao to refund the amount of complainants along with interest and compensation. Since there was no compliance, the complainants moved execution petitions against him.

He was then sentenced to jail terms in the cases. State Consumer Disputes Redressal Forum in 2018 upheld the decision, leading to filing of appeal before National Consumer Disputes Redressal Commission (NCDRC).

Subsequently, the Commission direct Rao to deposit 25% of the decree amount in each case before the executing court for consideration of his release. He then moved the Supreme Court, arguing that the Commission had failed to interfere with the direction that the punishments in the 30 cases shall run consecutively instead of concurrently.

The top court had issued notice in the matter in March 2021.

In the appeal, Rao has argued that consumer forum directed sentences to run consecutively instead of concurrently, even though the cases “arise out of the same transaction.”

This would mean he would serve more than 60 years in jail instead of 2 years.

"The punishment imposed in respect of the same transaction ought to have been directed to run concurrently, but the State Commission directed otherwise.It is submitted that, when multiple prosecutions arise out of the same transaction, sentences are ordinarily directed to run concurrently," the plea states.

According to Rao's plea, he had been advised eye surgery as far back as 2018. However, his request for parole was initially turned down by the jail authorities.

His spouse then repeatedly petitioned the Telangana High Court for parole. A 20-day parole was granted to him in January 2024 on orders of the High Court. However, the surgery later got rescheduled. His subsequent application for extension of parole was rejected by the High Court

Later, the High Court allowed Rao to file a fresh request for parole. The State then granted him 30 days of parole in August 2024. This was followed by another 30-day interim extension.

When that period ended, the High Court said the petition had become infructuous but it again permitted him to submit a new representation.

Rao has now moved the top court stating that his surgery has been "repeatedly postponed owing to unavoidable medical exigencies" and that he "continues to suffer from progressive and deteriorating loss of eyesight."

There is an imminent risk of permanent and irreversible blindness if timely surgical intervention is not undertaken, the plea states.

The plea also refers to the Telangana Protection of Depositors of Financial Establishments Act, 1999 proceedings, wherein Rao's properties have been attached and are currently in the proposed auction stage.

The application submits that imprisonment under Section 27 of the Consumer Protection Act “is not penal in nature but coercive and remedial,” intended only to ensure compliance with consumer forum orders.

"Incarceration for over 7 years, without concurrent running of sentences, has resulted in gross disproportionality," it has been argued.

Advocates Sriram Parakkat, Joe Anton Beno, Ananthu S Nair and Maneesha Sunil Kumar appeared for Rao.