ORDER :

This Criminal Petition is filed under Section - 482 of the Code of Criminal Procedure, 1973 (for short ‘Cr.P.C.’) to quash the proceedings in C.C. No.6 of 2004 on the file of Metropolitan Sessions Judge, Nampally, Hyderabad.

2. The petitioner herein is accused in C.C. No.6 of 2004. The offences alleged against him are under Sections - 409 and 420 of IPC and Section - 5 of the Telangana Protection of Depositors of Financial Establishments Act, 1999 (Act, 1999’) and Section - 45S read with 58B (5) (a) of the Reserve Bank of India Act, 1934 (for short ‘Act, 1934’).

3. Heard Mr. Mahesh Raje, learned counsel for the petitioner and learned Public Prosecutor appearing on behalf of respondent No.1-State. Despite sending the notice to respondent No.2, it was returned undelivered.

4. As per charge sheet, the allegations against the petitioner herein are as follows:

i) The petitioner herein started a Magazine in the year 1991 under the name and style ‘city Real Estate Bulletin’ at Hyderabad.

ii) After inception of the said magazine, the petitioner came in contact with several persons doing in real-estate business in Hyderabad City, and used to settle real-estate disputes and started amassing wealth.

iii) With the said background of his business, the petitioner in persecution of his object, conceived the idea of floating registered companies. Accordingly, he floated two registered companies viz., 1) Tanuraj Iron & Steel Private Limited on 20.02.1995, which was intended to manufacture of steel; and 2) Tanuraj Publishers Private Limited on 16.05.1995, which deals with real-estate business. Both the said companies have registered with the Registrar of Companies, Hyderabad, vide registration Nos.01-23274 and 01-20342 respectively.

iv) During the month of November, 1995, the petitioner started another unregistered company under the name and style ‘Franzaan & Co.’ (a Unit of Asanzubi Group of Industries) and gave advertisements in leading Urdu Daily Newspapers of Hyderabad City, named ‘The Munsif’ and ‘Siasat’ and requested the public to invest money in the said company for good returns. The response from the public was not according to the expectation of the petitioner, that is to say, nobody came forward to invest even a single paise in the said company.

v) The petitioner herein having miserably failed to attract money from the public touched the religious feelings of Muslim Community and started giving wide publicity in the leading daily Urdu Newspapers, like ‘The Munsif’ and ‘Siasat’ by advertising as ‘Halal Munafa’ (profit from investment) and the profits would be distributed to the subscribers every month. With the said advertisement touching the religious feelings of Muslim Community, the gullible public of Muslim Community came forward in multitude and started investing their hard earned money in Franzaan & Co.

vi) On account of touching the religious feelings of Muslim Community, the petitioner received money from the innocent public to a tune of Crores and thereafter started another 10 Companies which were registered with the Registrar of Companies, Hyderabad by inducting the members other than his family members and received money from the public and kept them in Franzaan & Co. only while the other said companies are only for the namesake to cheat the public.

vii) The petitioner with an intention to grab more money from the gullible public floated different schemes carrying different rates of interest in the name of ‘Halal Munafa (As per Holly Quaran giving money for interest is a sin, but taking money as profit out of the money invested is not a sin). The schemes opened by the petitioner are; 1). A1 Rahat-II, 2). A1 Rahat-III, 3). Lakhpathi, 4). Lakhpati-II, 5). Lakhpati-IIB, 6). Amanat-I, 7). Amanat-II, 8). Amanat-III, 9). Hayat, 10). A-2, 11). A-3 (Sl.Nos.1 to 11 schemes covered Franzaan Finco), 12). Lakhpati-III (this scheme is covered by Franzaan Fincap), 13). Redemption Note (this scheme was covered by Franzaan Enterprises), 14).