THE HON’BLE SMT. JUSTICE TIRUMALA DEVI EADA CRIMINAL PETITION No.6351 OF 2025

ORDER:

This Criminal Petition is filed by the petitioner – accused No.2 seeking to quash the charge sheet in C.C.No.04 of 2024 on the file of the learned Principal Senior Civil Judge-cum-Chief Judicial Magistrate at Malkajgiri, Medchal-Malkajgiri District, registered for the offence under Sections 406 and 420 of the Indian Penal Code and Sections 4 and 5 of the Telangana State Chit Fund Finance Act.

2. Heard the submissions of Sri K.Venumadhav, learned counsel for the petitioner and Sri M.Vivekananda Reddy, learned Assistant Public Prosecutor for respondent No.1 – State.

3. The learned petitioner counsel has submitted that the allegations of the prosecution are only made against accused No.1 and that accused No.2 is the son of accused No.1 who is no way connected to the alleged transaction. It is the allegation of the de facto complainant that he gave amounts to accused No.1 and that nowhere he has mentioned the name of accused No.2. He therefore, submitted that accused No.2 is the petitioner herein and that since he is facing false allegations without there being any basis and without there being any involvement of the petitioner, he therefore, prayed to quash the charge sheet against the petitioner. 4. The learned Assistant Public Prosecutor, on the other hand, has submitted that the allegations point out the involvement of both accused Nos.1 and 2 that they used to run chit fund business and that the victims have invested money with them in good faith and were cheated. Hence, he prayed to dismiss the petition stating that accused No.2 is also involved in the offence along with his father accused No.1.

5. Perused the record.

6. The petitioner herein is accused No.2. It is alleged that his father Anil Kumar has started giving hand loans to needy people on daily finance basis since 2015 and in addition to this he started chit fund business in the vicinity without possessing any valid license, making the local people believe that he is in good reputation and that he borrowed amounts from the local people and lend money to others on higher rate of interest and that in 2017 he fell ill and since then accused No.2 has been looking after the said business and that they have cheated the people from whom they borrowed money to an extent of Rs.9 to 10 crores. It is the case of the prosecution that both accused Nos.1 and 2 attracted depositors and entered into chit fund schemes with various amounts and taking advantage of the innocence of the victims, both the accused collected money and that when the victim started insisting on repayment, they switched off their mobiles and vacated the house from the locality deceiving them to an extent of Rs.2,90,00,000/- with an intention to cheat the victims. Thus, the police have filed charge sheet under Sections 406 and 420 of the Indian Penal Code and Sections 4 and 5 of the Telangana State Chit Fund Finance Act against the accused.

7. The prima facie allegations point out the involvement of accused No.2 along with his father and the said allegations are of serious nature. The truth or otherwise of the said allegations would come out during the course of trial. Hence, it is not a fit case to quash the charge sheet against the petitioner herein and the same is liable to be dismissed.

8. In the result, the Criminal Petition is disposed of directing the learned Principal Senior Civil Judge-cum-Chief Judicial Magistrate at Malkajgiri, Medchal-Malkajgiri District, to dispose of C.C.No.04 of 2024 as expeditiously as possible strictly, in accordance with law, on its own merits, without being influenced by any of the observations made by this Court.

Miscellaneous applications pending, if any, shall stand closed.

____________________________ JUSTICE TIRUMALA DEVI EADA Date: 04.08.2025 ns