ORDER

The 2nd respondent lodged the FIR alleging that the petitioner-accused No.6 and other accused who are the Directors of Shubhadrasi Chits (Karnataka) Private Limited, induced the 2nd respondent to invest in the chit fund, and in all invested a sum of Rs.5,10,000/-, and when he requested the petitioner and other accused for returning the money invested by him, the petitioner and other accused absconded and the premises in which the business was carried was locked.

2. It is further alleged that the said Private Limited Company is due crores of rupees to a large number of people. The police after investigation submitted the charge sheet against the petitioner and other accused for the offence punishable under Sections 406, 420, 120B r/w 34 of IPC and Section 76 r/w 79 of Chit Funds Act, 1982 and Sections 4 and 5 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978. Taking exception to the registration of FIR, this petition is filed.

3. Learned counsel for the petitioner submits that the petitioner/accused No.6 has been implicated only on the ground that she is the wife of accused No.2 who is allegedly to be the Director of the Chit fund company, and in the absence of any allegation disclosing commission of cognizable offences against the petitioner herein, the registration of the FIR is without any substance.

4. Learned counsel for the respondent-State submits that the allegation made in the FIR discloses the commission of cognizance offences against the petitioner and the veracity of the allegation requires to be investigated, and at this stage, the registration of the FIR does not warrant any interference.

5. Considered the submission made by learned counsel for the parties.

6. Perusal of the FIR indicated that there is no allegation that the petitioner either in the capacity of the Director or Officer incharge of the day-to-day affairs of the Chit fund company has induced the second respondent to invest money with an intention to cheat, except that she is the wife of accused No.2. Therefore, when there is no specific overtact against the petitioner herein that she along with other accused induced the second respondent to invest money with an intention to cheat, the registration of the FIR is without any substance, and the continuation of the investigation will be an abuse of the process of law.

7. Accordingly, I pass the following:

ORDER

i) The writ petition is allowed.

ii) The impugned FIR in Crime No.0193/2019, registered by the Indiranagar police station, Bengaluru, insofar as it relates to the petitioner-accused No.6 herein stands quashed.

Sd/-

JUDGE ABK List No.: 1 Sl No.: 18 IN THE HIGH COURT OF KARNATAKA AT BENGALURU [GANDHIMATHI A VS. STATE BY AND ANOTHER]

HCJ

02.04.2024 (VIDEO CONFERENCING / PHYSICAL HEARING)

ORDER

In the Operative portion of the order dated 05.03.2024 in page No.2 at para No.1 in third line instead of Indiranagar Chit Fund Private Limited is wrongly mentioned as Shubhadrasi Chits (Karnataka) Private Limited. Hence, the same is corrected as "Indiranagar Chit Funds Private Limited" and in the same para fifth line Rs.5,10,000/- is wrongly mentioned and the same is corrected as "Rs.8,00,000/-". At page No.2 para No.2 Offence punishable under Sections is wrongly mentioned as 406, 420, 120B R/w 34 of IPC and Section 76 r/w 79 and the same is corrected as Section "420 of IPC and Section 76 of Chit Funds Act, 1982".

This order may be read in conjunction with the order dated 05.03.2024. Registry to effect necessary corrections.