THE HON’BLE SMT. JUSTICE TIRUMALA DEVI EADA CRIMINAL PETITION No.10526 OF 2025

ORDER:

This Criminal Petition is filed by the petitioners – accused Nos.1 and 2 seeking to quash the proceedings in FIR No.169 of 2025 on the file of P.S. Sangareddy Town, Sangareddy District, registered for the offences under Sections 420, 406 read with Section 34 of the Indian Penal Code (for short “IPC”) and Section 5 of Telangana Chit Fund Act (for short “TSCF Act”) and Section 5 of The Telangana Protection of Depositors of Financial Establishment Act, 1999 (for short ‘TSPDFE Act, 1999”).

2. Heard the submissions of Sri N.Amarnath, learned counsel for the petitioners and Sri Jithender Rao Veeramalla, learned Additional Public Prosecutor for respondent No.1 – State.

3. The learned petitioners counsel has submitted that it is a Registered Chit Fund under Companies Act and that they are conducting chit fund business, therefore, TSPDFE Act does not get attracted and that it is falsely alleged by the de facto complainant that they have collected amounts from the victims and have deceived them. He further argued that there is no inducement to deliver the property and hence, the allegations under Section 420