THE HONOURABLE SMT JUSTICE K. SUJANA CRIMINAL PETITION No.3691 of 2025

ORDER:

This Criminal Petition is filed seeking to quash the proceedings initiated against the petitioner/accused in Crime No.1093 of 2024 dated 05.11.2024 before Rajendranagar Police Station, Cyberabad Commissionerate, registered for the offences punishable under Sections 316(2), 318(4) and 351(2) of BNS.

2. The brief facts of the case are that on 05.11.2024 the de facto complainant/respondent No.1 lodged a complaint against the petitioner before the Police stating that he had sold his property admeasuring 300 square yards in Survey No.66/3, situated at Raidurg (now Khalsa Village), Serilingampally Mandal, for a sum of Rs.2.33 crores, that was credited to his HDFC Bank account during May/June 2021. It was stated that for filing his income tax return and seeking advice on capital gains, he approached one K.Koteswara Rao/petitioner, a Chartered Accountant, and at that time, the petitioner requested to him for a loan of Rs.2.5 Crores for personal and business needs, promising to repay it within 12 months with interest at 1.6% per month. Believing him, the complainant transferred Rs.2.5 Crores on 21.06.2021 to the Bank of India account of the petitioner. It is stated that the petitioner made partial repayments from July 2021 to April 2022 but later started avoiding the complainant and failed to repay the remaining amount.

3. On receipt of the said complaint, the Police registered a case against the petitioner in Crime No.1093 of 2024 of Rajendranagar Police Station, Cyberabad Commissionerate, for the offences punishable under Sections 316(2), 318(4) and 351(2) of BNS. Aggrieved thereby, the petitioner/accused filed the present criminal petition to quash the proceedings against him.

4. Heard Sri G. V. Reddy, learned counsel for the petitioner, Sri P. Srinivasa Rao, learned counsel for respondent No.1 and Smt Shalini Saxena, learned Assistant Public Prosecutor for respondent No.2 – State.

5. Learned counsel for the petitioner submitted that the petitioner is the sole accused and he received a notice via WhatsApp on 20.11.2024 to appear before the Police. He further submitted that the allegations made by the de facto complainant are false and motivated and contrary to the vague claim that only part payments were made. He averred that the petitioner has in fact repaid a substantial amount of Rs.1,06,56,030/-, which is nearly 50% of the principal amount of Rs.2.5 Crores, and an additional sum of Rs.48,00,000/- towards interest between July 2021 and June 2022, during which the financial situation of the petitioner was severely impacted due to COVID-19 pandemic. He asserted that the petitioner, a Chartered Accountant by profession, faced immense hardship as his professional income was dependent on clients' businesses, many of which shut down during Covid-19, and reiterated that due to the prolonged financial distress, the petitioner could not adhere to the original repayment schedule despite his best efforts. However, in good faith, he issued two cheques of Rs.1.25 crores each, and deposited his original title deeds as collateral in favour of the complainant in accordance with a Memorandum of Understanding dated 21.06.2021, thereby, securing the loan amount.

6. Learned counsel for petitioner informed the Court that the de facto complainant has already filed a civil suit for recovery of money vide O.S.No.138/2024 before the IX Additional Chief Judge, City Civil Court, Hyderabad, and that the petitioner has even appeared in the said suit and filed a written statement admitting the transaction. Further, a memo dated 20.08.2024 was also filed by the complainant acknowledging receipt of Rs.1,06,56,030/-. He further submitted that on 21.02.2025, the petitioner deposited an additional Rs.10,00,000/- into the account of the de facto complainant, demonstrating his bona fides, and that these actions show that there is no dishonest intention or criminality involved, and the matter i