THE HON’BLE SRI JUSTICE E.V.VENUGOPAL CRIMINAL PETITION No.1534 OF 2023

ORDER:

1 Heard Sri Mayur Reddy, learned senior counsel appearing on behalf of Sri Saini Aravind, the learned counsel for the petitioner and Sri M.V.Hanumantha Rao, the learned counsel for the second respondent and Mr.E.Ganesh, learned Assistant Public Prosecutor for the first respondent – State.

2 This criminal petition is filed seeking to quash the proceedings against the petitioner in C.C.No.27 of 2022 on the file of the Court of Principal District and Sessions Judge, Hanumakonda registered for the offences under Sections 420, 406, 506 IPC and section 5 of Telangana Protection of Depositors of Financial Establishments Act, 1999.

3 The case of the prosecution is that the 2^nd respondent herein filed a report dated 06.01.2021 before the Commissioner of Police, Warangal stating inter alia that she and her husband are subscribers of Chits in Akshara Chit Funds Pvt. Ltd. and its branches at Hanumakonda, Ramnagar, Warangal, Kazipet, Jangaon, Siddipet, Jammikunta and Mahabubabad. The Head office of M/ s.Akshara Chit Funds Pvt. Ltd., is located at Nakkalagutta, Hanumakonda. It is alleged that Akshara Chit Fund Company Pvt. Ltd. has removed the 2^nd respondent and her husband from Non-prized chit groups up to 2017 without their knowledge and chit amounts and dividends were not paid. It is said that four house sites in (1) Sy.No.1087-200 sq. Yards, (2) Plot No.74 in Sy.No.93- 216 sq. Yards, (3) Plot No.260 in Haripuri Township, Yadadri (4) Plot No.2 & 3 admeasuring 426.09 sq. Yards in Jangaon were mortgaged with Akshara Chit Funds Pvt. Ltd., company. It is said that the 2^nd respondent is also working as an agent in Akshara Chit Funds Pvt. Ltd., company and its branches at Jammikunta, Kazipet, Ramnagar, Jangaon, Warangal, Siddipet, Mahabubabad and Hanumakonda branches. It is said that a request was made to the petitioner to pay the amounts and release mortgaged plots which were taken as surety. It is alleged that the petitioner alleged to have threatened her on several ways. The Dy.Registrar, Chits, Warangal despite request did not order for release of mortgaged four plots or for payment of amounts. It is also stated in the report expressing doubt about their signatures and fake sureties were furnished to grab the chit amount of Rs.2.5 crores. It is alleged that the Chairman and Managing Director has involved in Financial fraud, irregularities, fraudulent and manipulation of chit subscribers amount, fake sureties and illegal way of mortgaging plots. It is further stated that the 2^nd respondent have to get more than Rs.2.5 crores with interest from Akshara Chit Funds Pvt. Ltd., company. The police of P.S.Subedari on the endorsement made by the Commissioner, registered a case in Crime No.11 of 2021 under section 420, 506 IPC. The Inspector of Police, PS. Subedari filed a charge sheet in the Court of the Principal District and Sessions Judge: Hanumakonda for the offences under sections 420, 406, 506 IPC and section 5 of Telangana Protection of Depositors of Financial Establishments Act, 1999.

4 The learned senior counsel appearing for the petitioner submitted that the petitioner has not committed any offence as alleged by the prosecution much less the offence with which he was charge sheeted. It is submitted that Akshara Chit Funds Pvt. Ltd., company is a company registered under Indian Companies Act, carrying its business in Chits having been established on 27.11.2009. The petitioner is the Chairman and Managing Director of the aforesaid company. The company has been working since then carrying its business in chits from the date of its inception without any complaint of whatsoever in nature and gain reputation in the society. The company, due to overwhelming response from the subscribers has opened its branches at Hanumakonda, Warangal, Kazipet, Khammam-2, Khammam, Mahabubabad, Raparthy Nagar, Kothagudem, Kothagudem-2, Sathupally, Palvancha, Nalgonda, Suryapet, Karimna