The Akali leader Bibi Rajinder Kaur Bulara was, however, granted bail subsequently.
The court of Judicial Magistrate Ekta Sahota yesterday also imposed a penalty of Rs 5,000 on her.
Jagmohan Singh, a resident of village Pamkodi, had alleged that Bulara had taken Rs 9 lakh from him on the promise that she would help him in getting an LPG agency, but no such allotment was made.
Later, they reached a compromise in 2005 and two cheques were issued to Jagmohan Singh for Rs 5 lakh and Rs 2 lakh respectively.
However, both the cheques were dishonoured by the bank due to insufficient funds in the account of the former MP, a Lok Sabha member in late 1970s, the prosecution had submitted before the court.