The High Court · 2025

1. The Statg of Telangana, E"p Uy its public prosecutor High Court for the State ot Telangana At Hyderabad

2. Pujarla_shambarah, s/o- Venkaiah Age about 70 years, occ. Advocate R/o. Near RTC Bus Stand, Nakrekal Nalg6nda District. ...RESPONDENTS/COMPLAINANTS Petition under section 482 of cr.p .c praying that in the circumstances stated in the Memorandum of Grounds of criminal petition, the High court may be pleased toto quash the proceedings in c.c. No. 3671/201g onihe file of the court of the Judicial First class Magistrate At Nakrekal, Nalgonda District registered uls 420 of IPC against the petitioner/Accused No.6 and fass l.A. NO: 2 OF 2022 Petition under section 482 ol cr.p.c praying that in the circumstances stated in the Memorandum of Grounds of criminal petition,the High court may be pleased to stay all further proceedings in c.c. No. 36z1l2o1g-on the file of the court of the Judicial First class Magistrate, atNakrekal, Nalgonda District registered uls 420 of IPC against the petitioner. This Petition coming on for hearing,upon perusing the Memorandum of Grounds of criminal Petition and upon hearing the arguments of sri pRAVEEN KUMAR VEERJALA ,Advocate for the petitioners Mrs. s. Madhavi learned Assistant Public Prosecutor for the state of relangana on behalf of the Respondent No.'l the Court nade ihe follortng: OnOen THE HON'BLE SMT. JUSTICE JUWADISRIDEVI CRIMINAL PETITION No.1320 of 2022 ORDER: This Criminal Petition is filed under Section 482 of Cr.P.C. by the petitioner-accused No.6 seeking to quash the proceedings against him in C.C.No.367 1 of 2016 on the file of the learned Judicial First Class Magistrate at Nakrekal, Nalgonda District (for short 'trial Court'), pertaining to Crime No.106 of 2012 of P.S. Nakrekal. The offence alleged against the petitioner-accused No.6 is under Section 420 of the lndian Penal Code (for short'lPC').

2. Heard Sri Praveen Kumar Veerjala, learned counsel for the petitioner and Mrs. S.Madhavi, learned Assistant Public prosecutor appearing for the respondent-State. Perused the record

3. The case of the prosecution, in brief, is that all the accused in the crime have induced the general public to invest huge amounts in their Chit Fund Company by name Sri Sai Venkateswara Chit Funds private Limited and thereafter, they deceived the subscribers by not paying the promised prize amounts, as accused Nos.'l to 5 misappropriated the funds by diverting and using the money for their real estate and finance businesses. Basing on the said complaint, a case in Crime No.106 of 2012 was registered against the accused and after completion of F- ' :ii.'ii. 4 2 r..-] crl.P.No.132o ol 2022 \l I investigation, charge sheet was filed before the trial Court. The same was taken cognizance and numbered as C.C.No.3671 of 2016 for the aforesaid offence.

4. Learned counsel appearing for the petitioner submits that the petitioner-accused No.6 is innocent, has been falsely implicated in the case and nothing to do with the alleged offence. He further submits that the petitioner-accused No.6 is working as Verification Officer in the Chit Fund Company of accused No.1 and his role is only to verify the credentials of people who succeed in getting the chit prize amount. Apart from it, he has no cheque power, allotment power, administrative power or any sort of authority. He further submits that in fact, the petitioner- accused No.6 is the victim in the hands of accused No. l, as he did not pay salary to him for several months and also faced a lot of criticism and harassment from the people, due to misappropriation of funds and closing of the Company. There are no specific allegations against the petitioner-accused No.6 and the ingredients of the offence under Section 420 are not made out. Thus, he prayed to quash the proceedings against the petitioner

5. On the other hand, the learned Assistant Public Prosecutor contended that there are specific allegations against the petitioner and the allegations levelled in the complaint as well as in the charge sheet i } a 3 JS, J Crl.P.No.1320 of 2022 are subject matter of trial, and hence, this is nol a fit case to quash the proceedings at this stage. Accordingly, she prayed to dismiss the petition. I \ t I

6. As seen from the record, it is evident that the petitioner, who is arrayed as accused No.6, is working as Verification Officer in the Chit Fund Company of accused No.1. His role is only to verify the credentials of people who succeed in getting the chit prize amount. Apart from it, he has no cheque power, allotment power, administrative power or any sort of authority. To constitute the offence of cheating under Section 420 of lPC, it is settled law that there shall be dishonest or fraudulent intention on the part of the accused, from the inception. ln the present case, in the entire charge sheet, no specific role is attributed to the petitioner-accused No.6. Moreover, dishonest or fraudulent intention is not found on the part of the petitioner-accused No.6. ln the said circumstances, this Court is of the considered opinion that the continuation of criminal proceedings against the petitioner-accused No.6 amounts to sheer abuse of process of the law and the same are liable to be quashed.

7. Accordingly, this Criminal Petition is allowed, quashing the proceedings against the petitioner-accused No.6 in C.C.No.3671 of 2016 on the file of the learned Judicial First Class Magistrate at Nakrekal, Nalgonda District. I i ;I 4 JS, J Crl.P.No.132O ol 2022 Pending miscellaneous applications, if any, shall stand closed. Sd/. MOHO. ISMAIL DEPUTY REGISTRAR To, //TRUE COPY// ECTION OFFICER 1 . The Judicial First Class Magistrate at Nakerkal, Nalgonda District. 2. The Station House Officer, Nakrekal Police Station ,Nalgonda Diskict 3. Two CCs to Assistant Public Prosecutor, High Court for the State of Telangana at Hyderabad (OUT) 4 One CC to SRl. PRAVEEN KUMAR VEERJALA Advocate [OPUC] 5. Two CD Copies. VR/PSL '1<1{-- .--T;i-f{-.'' : -+ ' i,lt' i; HIGH COURT I I I I DATED:2010312025 gT o ( o I 2 J MltU (n( I ^' 4' ,-. * _/ -;;7 ORDER GRLP.No.1320 ot 2022 * D H ALLOWING THE CRIMINAL PETITION b