Criminal proceedings should not be quashed at the nascent stage of investigation if the FIR prima facie discloses cognizable offences, and the pendency of parallel proceedings before the NCLT does not bar prosecution for criminal acts like forgery and siphoning of funds.

1. Whether Reporters of Local newspapers may be allowed to see the Judgments? Yes/No
2. Whether the copies of judgment may be marked to Law Reporters/Journals? Yes/No
3. Whether Their Ladyship/Lordship wish to see the fair copy of the Judgment? Yes/No

_______________________
J. SREENIVAS RAO, J

THE HONOURABLE SRI JUSTICE J. SREENIVAS RAO
+ CRIMINAL PETITION No. 7288 of 2026
% Dated 10.07.2026
# Sri Lokesh Kumar Agarwal S/o Kamal Kishore Agarwal, age: 36 years, occ: Company Secretary, R/o 4-3-148/3, Sikhara Bliss, Flat No.G-23, Attapur, K.V.Rangareddy, Telangana-500048.
….Petitioner/Accused
VERSUS
$ The State of Telangana rep. by EOW PS, Cyberabad, through its Public Prosecutor and another.
… Respondents
! Counsel for Petitioner : Mr.Chetluru Sreenivas
^ Counsel for Respondents : Mr.S.N.Chidambara Sastry, learned counsel for respondent No.2
Mr.Jithendar Rao Veeramalla, learned Addl. Public Prosecutor (R.1)

GIST:

HEAD NOTE:

CITATIONS:
1. (2024) 10 SCC 690
2. 1992 Sup (1) SCC 335
3. (2021) 19 SCC 401
4. (2019) 14 SCC 350

HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
THE HONOURABLE SRI JUSTICE J. SREENIVAS RAO
CRIMINAL PETITION No. 7288 of 2026
DATE: 10.07.2026

Between :
Sri Lokesh Kumar Agarwal
....Petitioner/Accused
AND
The State of Telangana and another
....Respondents

: O R D E R :

This Criminal Petition has been filed by the petitioner/accused seeking to quash the proceedings in F.I.R. No.14 of 2026 of Economic Offences Wing, Cyberabad Commissionerate, for the offences punishable under Sections 318(4), 316(5), 336(3) and 340(2) of the Bharatiya Nyaya Sanhita, 2023 (for short ‘the BNS’).

Brief facts of the case

2.1 On 17.02.2026, respondent No.2 lodged a complaint stating that, she is the majority shareholder of M/s. Pharma Scroll Research and Consulting Private Limited, Hyderabad, (hereinafter referred to as ‘the Company’), which was established in 2017 with the stated objective of serving the healthcare industry. It was developed into a successful enterprise with a valuation of approximately Rs.300 Crores and annual revenues of nearly Rs.13 Crores. She held a controlling stake of 52%, Mrs. Vandana held 28% and the remaining shares were held by other shareholders including one international investor. It is further averred that the original shareholding pattern of the company, under which she held a controlling stake of 52%, was unlawfully altered through forged documents and illegal share transfers without the knowledge or consent of the genuine shareholders. It is alleged that Sahil Singla, Ramesh Nainwal, and Lokesh Kumar Agarwal, were responsible for the management of the company's affairs and in April 2024, Sahil and Ramesh became Directors, misused their positions to gain control over the company, which was done without intimating to her and without convening any board meeting.

2.2 It is further averred that, due to severe pregnancy related medical complications from 2020 until the birth of her child in December 2023, she was unable to participate in the company’s affairs. When she attempted to re-engage with the company’s operations in 2024, she was deliberately prevented from doing so. It has come to her attention that her signatures were forged on various corporate documents including share transfer forms and financial records. In addition, her husband obtained her signatures on blank papers and cheques under the guise of routine formalities, and misused them for authorized transactions. Without her consent, some of her shares and shares belonging to Mrs. Vandana were allegedly transferred in favour of two individuals, namely Shajan K.Baby and Mandala Aruna, to dilute her controlling stake in the company. She had initiated proceedings before the National Company Law Tribunal (NCLT), Hyderabad, challenging the said actions. From 2021 onwards, the accused