Special statutory regime controls colony-development disputes; IPC cheating and criminal breach claims failed without previous sanction.

Allegations arising from a colony-development dispute over external and infrastructure development charges, collection before approval, and alleged licence violations were examined under the Haryana Development and Regulation of Urban Areas Act, 1975. The Court noted that the special statutory regime governed the field, including contraventions of licence conditions and prosecution with previous sanction of the competent authority. On that basis, the materials did not disclose the essential ingredients of cheating or criminal breach of trust under the IPC, and no specific role was attributed to the petitioners as directors. The absence of previous sanction rendered the criminal proceedings unsustainable.

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Issues: Whether the FIR alleging cheating and criminal breach of trust arising from the colony-development dispute disclosed offences under the Indian Penal Code, or whether the matter was governed by the special statutory regime under the Haryana Development and Regulation of Urban Areas Act, 1975, and whether the absence of previous sanction barred prosecution.

Analysis: The dispute arose from allegations concerning levy of external and infrastructure development charges, collection of amounts before licence or plan approval, and alleged violation of licence conditions. The governing field was covered by the Haryana Development and Regulation of Urban Areas Act, 1975, which specifically regulated advertisement, transfer, contravention of licence conditions, punishment for violations, and prosecution only with previous sanction of the competent authority. In that setting, the materials did not disclose the essential ingredients of cheating or criminal breach of trust under the Indian Penal Code, and there was no specific attribution of role against the petitioners as directors. The record also showed that no previous sanction had been obtained before registration of the FIR.

Conclusion: The FIR did not disclose offences under the Indian Penal Code, the dispute fell within the special statutory scheme, and the absence of previous sanction rendered the criminal proceedings unsustainable; the petition was entitled to succeed.

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