IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HON'BLE SMT. JUSTICE TIRUMALA DEVI EADA CRIMINAL PETITION No.3654 OF 2023 DATE: 26-02-2026 Between:

Chegondi Hema Kiran … Petitioner And The State of Telangana, Rep. by its Public Prosecutor, High Court of Telangana, at Hyderabad and another ... Respondents

ORDER:

This Criminal Petition is filed by the petitioner-accused No.3 seeking to quash the proceedings against him in C.C.No.1715 of 2022 on the file of learned X Additional Chief Metropolitan Magistrate, Secunderabad, registered for the offences under Sections 420 and 406 I.P.C. and Sections 4 and 76 of the Chit Funds Act.

2. Heard Sri Koppula Gopal, learned counsel for the petitioner, Sri D. Arun Kumar, learned Additional Public Prosecutor for respondent No.1-State and Sri Suresh Bhakthula, learned counsel for respondent No.2.

3. The case of the prosecution is that accused Nos.1 to 4 were running an unregistered private chit business, collected amounts from the innocent people and cheated them in order to gain profits wrongfully. Accused Nos.1 and 2 were illiterate and so their children i.e., accused Nos.3 and 4 were maintaining the chit transactions.

4. Learned counsel for the petitioner submitted that the petitioner-accused No.3 is the son of accused Nos.1 and 2 and is innocent. The petitioner is not connected with any of the affairs of the chit fund business alleged to have been run by accused No.1. The petitioner was a minor as on the date of commission of the alleged offence; that he is a student at U.S.A.; and that he is not aware of the business being run by his parents. He further submitted that the petitioner being innocent, continuation of proceedings against him would spoil his career. He, therefore, prayed to quash the proceedings in the present C.C. against the petitioner.

5. Learned counsel for respondent No.2 submitted that the petitioner herein, who is the son of accused Nos.1 and 2, used to maintain the accounts and money of the chit business being run by his parents. Accused Nos.1 and 2 represented the victims that their children i.e., accused Nos.3 and 4, would take care of the payments if any and that they know the details of all the transactions. He further submitted that the Honourable Apex Court has ordered for speedy disposal of the case, but it has been getting prolonged as the petitioner’s counsel has taken many adjournments. He, therefore, prayed to dismiss the Criminal Petition.

6. Learned Additional Public Prosecutor has brought it to the notice of this Court that Non-Bailable Warrant (NBW) is pending against the petitioner-accused No.3 and that no relief can be extended to the petitioner when NBW is pending against him.

He, therefore, prayed to dismiss the Criminal Petition.

7. Perused the record.

8. The allegations in the complaint and the recitals of the charge sheet point out that accused Nos.1 and 2 used to run unregistered private chit business and collected amounts from innocent people. Accused No.1 happens to be the relative of de facto complainant (LW.1) and believing his version, LW.1 joined in the chits. The chit investments went on till the year 2012.

Thereafter, accused No.1 started asking amount for interest and LW.1 went on investing amounts. It is alleged that accused Nos.1 and 2 used to say LW.1 that her money is in safe hands; that every transaction is known to their children; and that they would take care of the payments in future. It is further alleged that LW.1 invested approximately an amount of Rs.70.16 lakhs. Thus, the recitals in the complaint point out that LW.1 invested certain amounts with the accused and her amounts are not paid back by the accused.

9. The contention of the petitioner’s counsel is that the petitioner was a minor in the year 2010, during which year the alleged transaction of chit has taken place between the de facto complainant and accused Nos.1 and 2. It is to be observed that the chit transaction continued till the year 2012 and thereafter also,