#power of attorney fraud

Allahabad High Court holds that returning the defrauded amount does not erase criminal liability under Sections 406 (criminal breach of trust) and 420 (cheating) IPC. The ruling underscores that fraud offences are non-compoundable, reinforcing strict accountability for accused even post-restitution.

When a plaintiff challenges a sale deed executed through a power of attorney, courts require court fees to be calculated based on the deed’s stated value unless and until fraud in the underlying power of attorney is formally established. This ruling binds plaintiffs in property disputes to treat the sale deed as valid at the pleading stage, shifting the burden of proving fraud to later stages - impacting how property title suits are structured and funded.