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2025 Supreme(Telangana) 1347
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
N.TUKARAMJI, J.
Vuppala Pavan Kumar – Appellant
Versus
The State of Telangana – Respondent
Criminal Petition No.5466 of 2025, Criminal Petition No.5516 of 2025, And Criminal Petition No.5504 of 2025
Decided On : 18-06-2025
Advocate Appeared:
For the Appellant : N NAVEEN KUMAR
For the Respondent: PUBLIC PROSECUTOR
Multiple FIRs can be registered for distinct transactions involving different victims; chit fund operations are subject to both the TSPDFE Act and Chit Funds Act.
Headnote:(A) Bharatiya Nagarik Suraksha Sanhita, 2023 - Section 528 - Indian Penal Code, 1860 - Sections 406, 420 - Chit Funds Act, 1982 - Section 76 - Telangana State Protection of Depositors of Financial Establishments Act, 1999 - Multiple petitions to quash proceedings alleging financial impropriety in unauthorized chit fund operations - Petitioners failed to establish abuse of process or lack of prima facie case against them. (Paras 2, 5, 10, 15)
(B) Legal principles - Registration of multiple FIRs permissible for distinct transactions involving different victims - Chit Fund operations can fall under penal provisions of the TSPDFE Act alongside the Chit Funds Act. (Paras 10, 12, 14)
Facts of the case:
Petitioners were charged with operating unauthorized chit funds defrauding multiple complainants of substantial sums, with different petitions filed regarding these financial allegations.
Findings of Court:
The court found no merit in the petitions for quashing proceedings, reaffirming prima facie allegations against the petitioners.
Issues: Whether multiple FIRs can be registered based on distinct transactions and whether the criminal liability under TSPDFE Act applies to chit fund operations.
Ratio Decidendi: Legal acceptability of multiple FIRs concerning different complainants was confirmed, and the TSPDFE Act was found applicable alongside the Chit Funds Act.
Result: Petitions dismissed.
| Table of Content |
|---|
| 1. challenging criminal proceedings against petitioners. (Para 1 , 2 , 4) |
| 2. arguments regarding multiple firs and procedural abuse. (Para 5 , 6 , 7) |
| 3. court analysis of multiple firs in distinct transactions. (Para 8 , 9 , 10 , 11) |
| 4. applicability of tspdfe act in chit fund operations. (Para 12 , 13 , 14) |
| 5. conclusion on merits of quashing criminal proceedings. (Para 15 , 16) |
ORDER :
N. TUKARAMJI, J.
1. (a). Criminal Petition No. 5466 of 2024 has been filed under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (hereinafter ‘BNSS, 2023’), seeking to quash the proceedings against Petitioners 1 to 4 (Accused Nos. 1, 3 to 5) in Calendar Case No. 20 of 2024, pending before the Metropolitan Sessions Judge, Nampally, Hyderabad.
(b). Criminal Petition No. 5516 of 2024, also under Section 528 of BNSS, 2023, seeks similar relief for Petitioners 1 to 4 (Accused Nos. 1 to 4) in Calendar Case No. 22 of 2024 before the same court.
(c). Criminal Petition No. 5504 of 2024, again under Section 528 of BNSS, 2023, seeks quashing of proceedings against Petitioners 1 to 4 (Accused Nos. 1 to 4) in Calendar Case No. 24 of 2024, also before the Metropolitan Sessions Judge, Nampally, Hyderabad.
2. In each of these cases, the petitioners are charged with offences under Sections 406 and 420 read with Section 34 of the Indian Penal Code, 1860 (‘IPC’), Section 76 of the Chit Funds Act, 1982, and Section 5 of the Telangana State Protection of Depositors of Financial Establishments Act, 1999 (‘TSPDFE Act’).
3. I have heard arguments of Mr. N. Naveen Kumar, learned counsel for the petitioners, and Mr. Jithender Rao Veeramalla, learned Additional Public Prosecutor for Respondent No. 1.
Summary of Prosecution Cases:
4. (a). Calendar Case No. 20 of 2024 (Criminal Petition No. 5466 of 2024):
Petitioner No. 1 approached the de facto complainant, representing that he operated a registered chit fund business with Vuppala Naveen Kumar under the name Sree Nagarjuna Enterprises, and requested the complainant to refer subscribers. The complainant got enrolled his wife and others as subscribers. After paying the required instalments, when the complainant’s wife sought to collect the prize amount, Petitioner No. 1 evaded payment. The complainant later learnt that other subscribers were similarly denied repayment, resulting in a collective financial loss exceeding Rs. 1 crore. Based on the police report, Crime No. 103 of 2022 was registered.
(b). Calendar Case No. 22 of 2024 (Criminal Petition No. 5516 of 2024):
The complainant, a Director of Coruscant Systems Private Limited, Hyderabad, participated in a chit operated by Nagarjuna Enterprises Chit and Finance Company. After making the necessary payments, he became the successful bidder in January 2021 and was entitled to Rs. 18,59,625/-. However, when he approached Pavan Kumar Vuppala for payment, the amount was not paid and the latter absconded. Crime No. 90 of 2022 was registered by Mahankali Police Station, later re-registered as Crime No. 263 of 2022 by District Hyderabad Police Station CCS, EOW Team-VIII.
(c). Calendar Case No. 24 of 2024 (Criminal Petition No. 5504 of 2024):
The complainant alleged that Petitioner No. 1, Vuppala Ramesh, introduced Petitioner No. 2, Vuppala Pavan Kumar, and solicited investments in Sree Nagarjuna Enterprises, promising 1.5% monthly interest. The complainant and his wife deposited Rs. 25,00,000/- and joined a chit group for Rs. 5,00,000/-. Promissory notes were executed, but upon maturity, no payments were made. Cheques issued by the petitioners were dishonoured, prompting the complainant to file a police report. Crime No. 102 of 2022 was registered by Mahankali Police Station, later re-registered as Crime No. 262 of 2022 by District Hyderabad Police Station CCS, EOW Team-VIII.
5. Following investigation and examination of witnesses and documents, the prosecution concluded that the petitioners, with criminal intent, operated an unauthorized chit fund business, causing w
