ORDER :

Criminal Petition No.12835 of 2015 is filed by the Petitioners/Accused Nos.1 and 2, under Section 482 of the Code of Criminal Procedure, 1973 (for short “Cr.P.C”) praying to quash the proceedings against them in C.C.No.302 of 2015 on the file of the Court of Judicial Magistrate of First Class, Kothapeta, East Godavari District, for the offences under Sections 406, 409, 417, 420 and 471 read with 34 IPC.

Criminal Petition No.8884 of 2015 is filed by the Petitioners/Accused Nos.3 and 4, under Section 482 of the Code of Criminal Procedure, 1973 (for short “Cr.P.C”) praying to quash the proceedings against them in C.C.No.302 of 2015 pending on the file of the Court of Judicial Magistrate of First Class, Kothapeta, East Godavari District, for the offences under Sections 406, 409, 417, 420 and 471 read with 34 IPC.

2. Since both the criminal petitions are arising out of C.C.No.302 of 2015 and raising common questions of law, they have been heard together and are being decided by this common order.

3. For the sake of convenience, the parties are hereinafter referred to as they are arrayed before the trial Court in C.C.No.302 of 2015.

4. The marshalling of facts upon perusal of the complaint and other material available at this stage is that A.1 – Maddipoti Venkata Satya Ramu and A.2 – Sujatha are husband and wife respectively. A.3 – Maddipoti Satyanarayana Chowdary and A.4 – Maddipoti Vara Lakshmi are husband and wife respectively and parents of A.1 and A.1, A.2 and A.4 are the Directors of Maddipoti Consultants Private Limited. A.1 is also the Director of PGM Infrastructures Private Limited.

(ii) The complainant, Chinnam Naga Venkata Satyanarayana Reddy, is the Managing Director of M/s.Soubhagya Projects Private Limited, which is registered under the Companies Act. On 31.08.2008, M/s.Soubhagya Projects Private Limited appointed M/s.JBRK & Co., Limited as Auditors to audit the accounts of the Company for the financial year 2007-2008. A.1 (ACA Membership No.20765) and one Praveen (ACA Membership No.204968), who are the Chartered Accountants and the partners of M/s.JBRK & Co., Limited, attended the audit of the said Company and subsequently, A.1 took active role in the financial activities of M/s.Soubhagya Projects Private Limited and gained confidence of the Company. Thus, M/s. Soubhagya Projects Private Limited issued 1,50,000 equity shares each of Rs.10/- to A.2, who is the wife of A.1 and 1,39,400 shares to L.W.5 – Hanumanthavarjula Ratna Prasad. Later, they have joined as Additional Directors of M/s.Soubhagya Projects Private Limited. Subsequently, they became the Directors of the Company from 28.08.2011.

(iii) The de facto Complainant and his brother reposed trust and confidence in A.1 as he happened to be the Auditor and A.1 gained access to various financial transactions of M/s. Soubhagya Projects Private Limited. Taking advantage of his position as a Director of the Company, A.1 took over the steering of the financial matters of M/s. Soubhagya Projects Private Limited and fraudulently, misrepresented to TATA Capital Limited, Mumbai as if he is the Managing Director of the Company and obtained loan and also withdrew the amounts and diverted them wrongfully to his accounts.

(iv) On 12.11.2011, A.1 with a fraudulent intention to cheat the Company, approached TATA Capital Limited, Mumbai, for obtaining term loan of Rs.10.00 crores and put his signature as Managing Director of M/s. Soubhagya Projects Private Limited, though he was not a Managing Director of M/s. Soubhagya Projects Private Limited, by showing himself as one of the guarantors and A.4 as the 2nd guarantor. As per Bylaws of M/s. Soubhagya Projects Private Limited, at least two Directors have to sign on any funding documents, but TATA Capital Limited accepted the representation sent by A.1, processed the loan formalities by accepting documents submitted by A.1 and sanctioned the loan of Rs.10.00 crores on 12.01.2012.

(v) A.1 and A.2, who are husband and wife, created a f