( 1 ) THE appellant preferred this criminal appeal aggrieved by the conviction and sentence imposed on him by the judgment dated 31-7-1998 in Calendar Case no. 6 of 1997 on the file of the Chif Judicial magistrate/additional Sessions Judge, adilabad. The charge-sheet was filed against the appellant-accused for the offences under sections 4 and 5 (i) (ii) and (iii) of Prize, chits and Money Circulation Schemes (Banning) act, 1978 (for short hereinafter referred to as the Act for the purpose of convenience) in Crime No. 52 of 1997 on the file of adilabad I Town Police Station.

( 2 ) IT is the case of the prosecution that the accused started money circulation scheme in the name of Indira Finance Enterprises in the premises bearing Door No. 4/3-135/3 near Anand Bhavan Lodge, adilabad. He enrolled 1500 members by taking deposit of Rs. 200/- per month. The period of scheme is 51/2 years. The accused also issued receipts specifying the above facts by showing the maturity date as 10-12-2001. Thus the accused contravened the provisions of the Act. It is also the case of the prosecution that on 16-3-1997 at about 4 p. m. PW-7 raided the premises of Indira Finance enterprise