Reserved on : 03.03.2026 Pronounced on : 13.03.2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 13^TH DAY OF MARCH, 2026 BEFORE THE HON'BLE MR. JUSTICE M. NAGAPRASANNA CRIMINAL PETITION No.11161 OF 2023 BETWEEN:

1 . SRI SUDEEP SRINIVAS S/O M.SRINIVAS AGED ABOUT 41 YEARS OCCUPATION ARCHITECT R/O PLOT NO.969, 5^TH C-CROSS

11^TH MAIN, VIJAYA BANK COLONY BILEKALAHALLI BANNERUGHATTA ROAD BENGALURU – 560 076.

2 . SMT.PREETHI RAMMOHAN W/O SUDEEP SRINIVAS AGED ABOUT 37 YEARS OCCUPATION PRIVATE SERVICE R/O PLOT NO.969, 5^TH C-CROSS

11^TH MAIN, VIJAYA BANK COLONY BILEKALAHALLI BANNERUGHATTA ROAD BENGALURU – 560 076.

... PETITIONERS (BY SRI C.H.JADHAV, SR.ADVOCATE FOR SRI CHETAN JADHAV, ADVOCATE)

AND:

1 . STATE OF KARNATAKA REPRESENTED BY JAYANAGAR PS BENGALURU REPRESENTED BY THE STATE PUBLIC PROSECUTOR HIGH COURT OF KARNATAKA BENGALURU – 560 001.

2 . PRABHAKAR S/O LATE MUNIVENKATEGOWDA AGED ABOUT 76 YEARS ADDRESS: NO.196, 7^TH MAIN

4^TH BLOCK, JAYANAGAR BENGALURU – 560 011.

... RESPONDENTS (BY SRI B.N.JAGADEESHA, ADDL.SPP FOR R-1;

SRI C.M.KEMPEGOWDA, ADVOCATE FOR R-2)

THIS CRIMINAL PETITION IS FILED UNDER SECTION 482 OF CR.P.C., PRAYING TO SET ASIDE THE ORDER DATED 21.07.2023 IN SPL.C.C.NO.1673/2023 PASSED BY THE HON’BLE XLVII ADDITIONAL CITY CIVIL AND SESSIONS JUDGE AND SPECIAL JUDGE FOR CBI CASES AT BENGALURU (CCH-48) THEREBY TAKING COGNIZANCE FOR THE OFFENCES P/U/S 420 R/W 34 OF IPC, SEC. 9 OF KARNATAKA PROTECTION OF INTEREST OF DEPOSITORS IN FINANCIAL ESTABLISHMENTS ACT, 2004 A/W SECTION 76 OF CHIT FUNDS ACT AND SEC. 38, 39 AND 41 OF KARNATAKA MONEY LENDERS ACT AND CONSEQUENTLY, QUASH THE ENTIRE PROCEEDINGS IN SPL.C.C.NO.1673/2023, PENDING AGAINST THE PETITIONERS IN THE COURT OF XLVII ACC AND SJ AND SPECIAL JUDGE FOR CBI CASES (CCH-48), BENGALURU.

THIS CRIMINAL PETITION HAVING BEEN HEARD AND RESERVED FOR ORDERS ON 03.03.2026, COMING ON FOR PRONOUNCEMENT THIS DAY, THE COURT MADE THE FOLLOWING:-

CORAM: THE HON'BLE MR JUSTICE M.NAGAPRASANNA

CAV ORDER

The petitioners/accused Nos. 6 and 7 are before this Court calling in question proceedings in Spl.C.C.No.1673 of 2023 pending before XLVII Additional City Civil & Sessions Judge and Special Judge for CBI Cases, Bangalore City arising out of crime in Crime No.347 of 2015 registered for offences punishable under Sections 420 and 34 of the IPC; Section 9 of the Karnataka Protection of Interest of Depositors in Financial Establishments Act, 2004 (‘KPID Act’ for short); Section 76 of the Chit Funds Act, 1982 (‘Chit Funds Act’ for short) and Sections 38, 39 and 41 of the Karnataka Money Lenders Act, 1961 (‘Money Lenders Act’ for short).

2. Heard Sri C.H.Jadhav, learned senior counsel appearing for petitioners, Sri B.N.Jagadeesha, learned Additional State Public Prosecutor appearing for respondent No.1 and Sri C.M. Kempegowda, learned counsel appearing for respondent No.2.

3. Facts, in brief, germane are as follows: -

3.1. In the year 1989 a company called ‘Shreyas Finance &

Investments’ (‘the Company’ for short) is registered under the Companies Act, a Company established by accused Nos. 1 and 2 who are now accused Nos. 4 and 5 in the additional charge sheet. In the year 2010, the Company was established to run a chit fund business. The petitioners were appointed as Directors of the Company in the year 2011. On 14-07-2015 it appears that the petitioners resigned from the posts of Directors in the said chit fund Company. A complaint comes to be registered by the 2^nd respondent, one of the persons who had invested in the chits of the Company that the periodical amounts paid towards chits have vanished, which becomes a crime in Crime No.347 of 2015 for offence punishable under Section 420 r/w 34 of the IPC. The Police after investigation file a charge sheet for the afore-quoted offence. Cognizance is taken by the concerned Court on 26-12-2016 and summons was issued to the accused including the petitioners, not only in this case but in several cases concerning the Company. 3.2. Criminal Petitions had been file