The Supreme Court on Tuesday, October 10, directed the restoration of a cheating case filed against Latha Rajinikanth, the wife of superstar Rajinikanth, for allegedly diverting money paid to her for the post-production of the movie 'Kochadaiyaan'.

A bench comprising judges AS Boppana and MM Sundresh said that Latha should either file an application seeking discharge or face the trial proceedings. The bench added that if an application seeking discharge is filed before the trial court, the impugned order of the Karnataka High Court, partly quashing the cognizance taken under Sections 196, 199, and 420 of the Indian Penal Code (IPC), will not stand in the way.

The complaint is based on the allegation that Latha Rajinikanth had fraudulently induced the Managing Director of a Chennai-based advertising company to deliver monies under the pretext of the post-production cost of the movie. However, she allegedly diverted the money for other purposes, thereby causing him a wrongful loss. The high court, in August 2022, had said that the allegation relating to cheating and dishonestly inducing delivery of property has been recklessly included. 

In 2018, the Supreme Court had set aside another order of the Karnataka High Court quashing the FIR in the same dispute, saying that the high court should have allowed the trial to progress. “We make it clear that…the averments in the complaint constitute a prima facie case for commencement of the trial,” it had said.

On Tuesday, the Supreme Court ordered that Latha’s physical presence in the case will stand dispensed with unless required by the trial court. “We further make it clear that we have not expressed any opinions on the merits of the case and it is well open to the parties to resolve the issue, also through mediation,” the top court said.