THE HONOURABLE SRI JUSTICE N.TUKARAMJI CRIMINAL PETITION No. 4533 OF 2024

ORDER

This Criminal Petition is filed under Section 482 of the Code of Criminal Procedure, 1973 (for short ‘Cr.P.C.’), seeking quashment of the proceedings against the petitioner in Crime No. 269 of 2023 of Central Crime Station, Hyderabad.

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2. The petitioner is arrayed as accused No.6 in the Crime registered for the offences punishable under Sections 406, 420, 467, 468, 471, 506, 120-B read with Section 34 of the Indian Penal Code, 1860.

3. I have heard Mr.S.Nagesh Reddy, learned counsel for the petitioner and Mr.Jithender Rao Veeramalla, learned Additional Public Prosecutor, representing respondent No.1-State.

4. Learned counsel for the petitioner submits that the investigation has been pending for several years, during which no incriminating material has been found against the petitioner. It is further contended that the Bank account referred to by the investigating agency does not, in fact, belong to the petitioner. Moreover, learned counsel argues that the initiation of the Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT), Hyderabad, renders the present criminal proceedings legally unsustainable. In addition, it is pleaded that despite the issuance of a notice under Section 41-A of the Code of Criminal Procedure (Cr.P.C.), the petitioner was taken into custody by the investigating agency, causing undue hardship and violation of procedural safeguards. On these grounds, learned counsel prays for the quashing of the ongoing criminal proceedings.

5. In response, the learned Additional Public Prosecutor submits that the investigation is still underway. He further asserts that, in compliance with the orders of this Hon’ble Court in Criminal Petition No. 9665 of 2023, notice under Section 41-A Cr.P.C. was duly issued. If the necessity arises for the petitioner’s custodial interrogation, the investigating agency shall seek appropriate orders from the competent Magistrate. Accordingly, the grounds urged by the petitioner are devoid of merit and do not warrant any interference by this Court. Hence, it is prayed that the petition be dismissed.

6. I have perused the materials on record.

7. It is alleged that the petitioner, arrayed as Accused No.6, misled Respondent No.2, the de facto complainant, by presenting certain documents. According to the allegations, in December 2022, the petitioner, along with other co-accused, approached the de facto complainant with an assurance of facilitating the Corporate Insolvency Resolution Process by arranging funds from prospective investors. Acting on this representation, the de facto complainant is said to have transferred significant sums of money, thereby allegedly suffering a financial loss of approximately Rs.11.23 crores.

8. It is further averred that, in order to lend credibility to their representations, the accused persons, including the petitioner, furnished purported sanction letters relating to financial facilities. These acts have given rise to allegations involving criminal conspiracy and common intention, which are presently under investigation.

9. It is an admitted fact that the petitioner has been issued a notice under Section 41-A of the Code of Criminal Procedure, indicating that the investigating agency, at this stage, does not intend to effect the arrest of the petitioner. It is well settled that should the Police contemplate any coercive action against the petitioner, such action would necessarily be subject to judicial scrutiny by the competent Magistrate.

10. In view of the ongoing investigation and in the absence of any conclusive findings at this preliminary stage, the Court is of the considered opinion that drawing any definitive inference would be both premature and unwarranted. Accordingly, this Court does not find any merit in the present petition.

11. However, it is clarified that the petitioner shall be at liberty to avail appropriate legal remedies, including