Table of Content
1. allegations of cheating and criminal breach of trust involving fraudulent investment schemes. (Para 1 , 2 , 3)
2. contention that monetary disputes are civil in nature and proceedings are an abuse of process. (Para 4 , 5 , 6)
3. existence of prima facie evidence through bank transactions and disputed questions of fact. (Para 7 , 8 , 9)
4. limited scope of quashing proceedings when a cognizable offence is disclosed and investigation is ongoing. (Para 10 , 11 , 12)

:ORDER:

This Criminal Petition has been filed by the petitioners/accused Nos.1, 2, 3 and 5 under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (for short, ‘the BNSS’), seeking to quash the proceedings in Crime No.23 of 2026 of Kagaznagar Town Police Station, Kumrambheem Asifabad District, registered for the offences punishable under Sections 406 and 420 read with 34 of the Indian Penal Code, 1860 and Section 5 of Telangana Protection of Depositors of Financial Establishment Act, 1999 (for short ‘The Act’).

2. Heard Mrs. B. Rachna Reddy, learned Senior Counsel, representing Mr. Mohd. Baseer Riyaz, learned counsel for the petitioners, and Mr. Jithender Rao Veeramalla, learned Additional Public Prosecutor appearing on behalf of respondent No.1-State.

3. The brief facts of the case are that on 15.01.2026 at about 21:00 hours, the complainant, Gajjala Srinivas, S/o Gajjala Bheemalah, aged about 49 years, caste: Vyshya, occupation: Business, resident of H.No.1-16-131/5, Seethapathi Road, Kaghaznagar Town, appeared before the Police Station and lodged a complaint stating that A1: Thakur Karan Singh S/o Shiv Ratan Singh, A2: Thakur Rathan Singh S/o Thakur Karan Singh, A3: Thakur Ravinder @ Laddu Singh S/o Thakur Karan Singh, A4: Thakur Shiv Ranjani Bai D/o Thakur Karan Singh and A5: Thakur Rana Singh S/o Thakur Karan Singh, residents of H.No.42-1-1378, Shanthinagar, Near SFS School, North Lalaguda, Secunderabad, were carrying on business activities at Kaghaznagar and surrounding areas and represented that they were running multiple businesses at Hyderabad and other districts of Telangana. The accused induced the complainant and his family to invest money with them by assuring that they would provide attractive returns and profits up to 5% on the investments. On the basis of such assurances, the accused started a company in the name of “Divine Group of Company” at Kapuwada, claiming it to be an online trading company, and persuaded the complainant and his family to invest huge amounts by promising substantial profits through online trading along with repayment of the invested amounts and assured returns. Initially, the accused paid returns for a short period to gain the confidence of the complainant and thereby induced them to invest larger amounts, including amounts collected from friends, relatives and well-wishers. The complainant and his family transferred the following amounts through online transactions:

i) Rs.40,00,000/- to A1 Thakur Karan Singh through SBI, Kaghaznagar;

ii) Rs.43,00,000/- to A2 Thakur Rathan Singh through SBI, Kaghaznagar and HDFC, Asifabad;

iii) Rs.25,00,000/- to A4 Thakur Shiv Ranjani Bai through SBI, Kaghaznagar.

Thereafter, despite receiving huge investments from the complainant and his family, the accused stopped paying profits/interest and kept postponing repayment on one pretext or another. Subsequently, they closed down their office situated at H.No.1-13-204/5, Kapuwada, Bhattupalli Road, Kaghaznagar, and stopped responding to the calls of the complainant. Except A4 Thakur Shiv Ranjani Bai, all the accused switched off their mobile phones. Though A4 continued to send messages promising repayment shortly, no amount was repaid to the complainant and his family. It is further stated that when the complainant approached the residence of the accused at Shanthinagar, Near SFS School, North Lalaguda, Secunderabad, requesting repayment of at least the principal amount, the accused neither opened the doors nor respon

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