The High Court · 2025

THE HONOURABLE SRI JUSTICE J. SREENryAS RAO CRIMINAL PETITION No.4194 of 2025 ORDER: This Criminal Petition is filed under Sectio n 482 of the Bharaliya Nagarik Suraksha Sanhita, 2023 (BNSS) seeking anticipatory bail to the petitioner/accused No.5 in Crime No.13 of '2025 of EOW Police Station, Cyberabad, registered for the offences punishable under Sections 42O, 406, 4Og, 462, 468, 4Tl, 477A and. 120B of the Indian Penal Code, 1860 (tpc).

2. 'lhe case of prosecution in brief is that on 14.02.2025 at 1 1.30 hours, tlre de facto complainant lodged a complaint stating that he registered Kosher pharmaceutical private Limited and u,hich was cornmenct:d into operations in 2017. When he was tht: Managing Director of the said company, accLrsed No. 1 belongs to his villAge was appointed as accountant in the said company to look after the company accounts. Later, in 2022 due to some ciisputes/unavoidable situations, the said I(osher pharmaceutical Private Limited was acquired by MSN Croup in 2022 und,er SARFAESI Act. Later, in the year 2022, he registered LTR Life Sciences Private Limited. As accused No.l earlier rvorked in his company and.belongs to his native village, having in faith, he appointed accused No.1 ard one p. Narsimha Reddy as Directors of 2 t:'r1 the Company, but they have not invested any money nor have not any shares in the Company. As part of Company transactions, the de facto complainant has opened an account in lndian Balk with Joint cheque Power to the both directors. Accused No.l used to sit inthecorporateofficesituatedatPanjaguttaiHyderabad,tolook after bank account transactions, releasing purchase orders (POs) and P. Narsimha Reddy used to stay in plant situated at Jagadevpur Village and Mandal Siddipet Accused No' 1 frequently visited the plant at Jagadevpur village and taking it as an advantage, with malahde intention, l-re took the signatures of P' Narsimha Reddy on blank cheques' After taking signatures on the blank cheques, accused No.l diverted funds to his personal accounts, his wife's accounts ald cash transactions were made to his brother-in-[aq' and to his known business people accounts'

2.1'ItisstatedthattrlitePharmaceuticalPrivateCompanyowned by him is merged with LTR Life Sciences Private Limited' where accrrsed No.l and P. Narsimha Reddy, de facto complainant's wife L. PaIIavi and accused No.2 (Elite Directors) have became four Directors for the LTR Life Sciences Private Limited, and opened bankaccountsinBankofBaroda,Himayathnagarbranchand other account in HDFC Chandanagar branch and the cheque power has been given to Smt. L. Pallavi' After that' he and his family / 3 members have tralsferred these two accounts for the civil work and equipments works till cornmencement of company in operations. Due to personal problems, accused No.2 resigned from her directorship. Hence, only atrove said three persons are directors to the Company. During this course of action, l-ris lr.ife, namely Smt. Paliavi, everyday used to send signed blank cheques to corporate office to accused No.1 for daily requirement and equipment purchase in the best interest of Company estabiishment. Taking it an advantage, accused No.l used to keep few signed cheques aside, cleverly u.henever he got an opportunity he starred diverting the funds to his personal bank..account, his rvife,s account, his friend i:e., accused No.3's bank account and Creative Minds Company belongs to accused No.3, accused No.3,s u-ife saving accotrnts, Shiva Panrathi company's accounts beiongs 1o accused No.4 an<l other companies familiars. In the same manner, the proprietor Company LTR Infra cheques u,ere also misused by accused No.1 as Modus operandi. Due to great faith in accused No.l and also he belongs frorn his village, he did not have suspicious on him and used to believe him blindly. On 15.12.2023, Rs.35 Lakhs has to be received by our company from MSN pharma Company, but accused No.1 has given his Axis Bank account number and transferred the said amount to his personal bank account u,ithout the d.e facto 4 complainant's knowledge. When de facto compldinant came to know from MSN Pharma Company, immediately he instructed accused No. 1 to transfer the said amount to his company account for necessary requirements and accused No.l accepted the same. On the next day, accused No. 1 said that his saving account was frozen and sent me a letter in Whatsapp drafted by him, which contains that he is going to bank to defreeze his account, but it was absolutely false. On the next day, accused No.1 escaped and found absconding by switching off his mobile phone. When he enquired through bank authority, total amount of Rs.35 Lakhs was misused by him within two days for his bad habits i.e., Pubji Game, Oniine Rummy Game, Cricket bettings and other vices.

2.2. It is further stated that accused No.1 has brought accused No.3 and introduced him as Chartered Account to look after the transactions of the Company. But, accused No.1, with connivance of accused No.3, fraudulently misused his Companies GST inputs and created fake Income Tax receipts of his Company' Later on, he conducted audit in the company and during audit checking, he came to know that there was lot of variations found in the Company transactions and accused No. 1's halds in gloves with accused No.S, who is th€ share hoider of Kosher Pharmaceutical Private Limited and diverted funds to Vashist Implex Private Limited 5 Company, which is owned by accused No.5, about Rs.2 Crores from his company accounts.

2.3. Apart from it, accused No.1 cheated the Company with creation of fabricated PF Challans, Income Tax payment receipts. In July, 2023, accused No.1 called him over phone stating that an unexpected incident happened in his house, u,herein acctdently his son pushed down a boy on tJre floor, due to which, he sustained head injurl' and the parents of the boy demanding huge money and requcsted him to give monel/. Immediately, he transferred money of Rs.3 Lakhs to accused No. 1's savings accounts from p. Narsimha Reddy account to resolve the issue. He came to know later that the said incident is a fake one, which shows his criminal attitude. It is furtl-rer stated that accused No,S was the son of the G.Venu Gopal Redcly, *'ho is the share holder of Kosher pharmaceutical private Limited, and he is no rvay concerned with L,lR Life Sciences Company. But, acr:used Nos. 1 and 5 criminally conspired and hands in gloves together and illegally divertecl his LTR Life science,s shares and transferred the same by taking signatures on blank letter heads and passed board -resoiutions. Accused No. 1 diverted the company funds illegaliy and created fake and fabricated Income Ta-x payment receipts of the Company and cause huge loss to the Companl- and also criminally conspired u.ith accused No.S in 6 seiiing his Company shares illegally and transferred Rs' 15 lakhs from accused No.S's savings accounts to accused No' l's savings account. Hence, take legal action against the accused persons'

3. Heard Mr. S. Nagesh Reddy, learned counsel for the petitioner, Mr. Syed Yasar Mamoon, learned Additional Public Prosecutor appearing for respondent No'1- State and Mr' C.Haripreeth, learned counsel for respondent No'2lde facto complainant.

4. Learned counsel for the petitioner submitted that the petitioner has not committed -any offence and he u'as falsely implicated in the present crime. The entire allegations are levelled against accused Nos.I to 3 and there are no allegations, much less specifrc allegations, against the petitioner to attract the ingredients under the provisions of 42O, 406, 4O9,467, 468,47 1,477A and 12OB of the IPC. The petitioner has not received any amount from accused No. 1.

4.1. He further submitted that at the request of respondent No 2' the petitioner floated Vashist Irnplex Private Limited in the year 2Ol7 with a specific task of paying salaries to the contract employees of Kosher Pharmaceutical Private Limited Even according to the allegations made by respondent No'2 in his 7 complaint, Vashist Implex Private Limited received Rs.2 Crores from the Kosher Pharmaceutical Private Limited only for the purpose of paying salaries to the contract employees of Kosher pharmaceutical Private Limited, accordingly, the petitioner paid salaries to the employees of Kosher Pharmaceutical private Limited. The petitioner has not utilized the amounts pertaining to the Kosher Pharmaceutical Private Limited for his personal use. Even according to the allegations made in the complaint of respondent No.2, he established the company under the name and style of Kosher Pharmaceutical Private Limited in the year 2017 and he is the Managing I)irector of the said company and the father of the petitioner, namely G. Venu Gopal Reddy, is also share-holder of the Kosher Pharmaceutical Private Limited and due to the disputes, Kosher Pharmaceutical Private Limited was acquired by MSN gror,rp in the year 2022 under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2OO2.

4.2. He further submitted that father of the petitioner lodged a complaint against respondent No.2 and others in respect of mis_ management of the said Kosher pharmaceutical private Limited before the Jagdevpur police Station, Siddipet District on 21.O5.2O2O and basing on the said complaint, Crime No.52 of 2O2O was registered for the offences under Sections 409, 42O, 467, 46g, 8 471, 477A and 506 IPC read with 12Ob of the IPC and Sections 66, 66C and 66D of the Information Technologr Act, 2000-2008 and the father of the petitioner also instituted Company Petition, namely C.P.No.199/ 2 4l IHTB 12020 against respondent No.2 for the entire acts of oppression and before the National Company Law Tribunal (hereinafter referred to, as "NCLT"), Hyderabad and the same was dismissed and an appeal was preferred by the father of the petitioner before the National Company Law Appellate Tribunal (hereinafter referred to, as "NCLAT"), Chennai Bench and r'vhen the said proceedings are pending, with an oblique motive, respondent No.2 lodged the complaint against the petitioner to settle the disputes between him ald his father as a counter-blast. There is no privity of the contract between the petitioner and accused No.1. 4 .3. He also submitted that one of the Directors of LTR Life Sciences Private Limited filed suit in O.S.No.69 of 2024 before the Senior Civil Judge, Medchal-Malkajgiri District at Malkajgiri against accused No.3 i.e., M/s'Creative Minds Group, represented by Mr' Lokeshwar Katti, in the present crime, for recovery of amount and the said suit is pending.

4.4. He also submitted that accused Nos.1 to 3 were arrested and accused No.2 was enlarged on bail and material part of the 9 investigation is completed. The petitioner is ready and willing to cooperate r'vith the investigation and abide by the conditions, which are going to be imposed by this Court. Hence, the petitioner may be enlarged on pre arrest bail.

5. Per c'ontra, k:arned counsel for respondent No.2 submitted that the petitioner and other accused have committed the grave offence ancl accused No. 1. diverted the huge amounts from the company of Kosher Pharmaceutical Private Limited and LTR Life Sciences Private Lirnited inlo the personal accounts of the other accused and thcy mis appropriated a total amount of Rs.5,82,41 .582 l-. lje further submitted that there is no proof that the petitior-rer or Vashist Implex Private Limited has received the huge amount for the purpose of distribution of the salaries of the employees of the Kosher Pharmaceutical private l-imited and there is no correspondence between the Kosher pharmaceutical private Limited and the Vashist Implex Private Limited. There are specific allegations against the petitioner that he along with other accused received amounts belonging to respondent No.2 company and the investigation is under progress. At this stage, if the petitioner is granted anticipatorv bail, he will influence the witnesses and also interfere with the investigation. Hence, the petitioner is not entitled for grant of anticipatory bai1. i0

6. Learned Additional Public Prosecutor submitted that there are specific allegations against the petitioner that about Rs.2 Crores of respondent No.2 company funds were diverted to the bank account of Vashist Implex Private Limited, owned by the petitioner, in connivance of accused No.l. He further submitted that during the course of investigation, it reveals that accused No.l, who connived with the petitioner, diverted the amount of Rs.2.35 Crores held in the name of Vashist Implex Private Limited from the Canara Bank account held in the name ol Kosher Pharmaceuticai Private Limited. The pendency of the criminal case fi1ed by the father of the petitioner and also pendency of appeal before the NCLAT has nothing to do with the complaint lodged by respondent No.2. The petitioner and other accused have mis-appropriated huge amounts of respondent No.2 and the inveStigation is under progress. At this stage, the petitioner is not entitled for grant of anticipatory bail 7 . Having considered the rival submissions made by the respective parties and after perusal of the material available on record, it reveals that respondent No.2 lodged a complaint on

06.02.2025 before the Deputy Commissioner of Police, EOW, Cyberabad. Basing on the same, Crime No. 13 of 2025 rvas registered on 14.O2.2025. The record further reveais that there are specihc allegations against the petitioner that accused No.1 r,vho is 11 working as accountant in respondent No.2 Compaly i.e. Kosher Pharmaceutical Private Limited, in collusion with the petitioner, diverted an amorlnt of Rs.2.35 Crores in name of Vashist Implex Private Limited, which is belonging to the petitioner from the Canara Bank Account No.3438125000O f 39 held in the name of Kosher Pharmaceutical Private Limited. It is not in dispute that the father of the petitioner is also director of Kosher Pharmaceutical Private Limited and responrlent No.2 is the Managing Director of the said company and the father of the petitioner lodged a complaint against respondent No.2 and others and basing on the said complaint, Crime No.52 of 2O2O was registered by the Jagdevpur Police Station, Siddipet. It is also not in dispute that the father of the petitioner frled Company Petition No.l99/241 IHTB/2O2O before the NCLT, Hyderabad, and the same was dismissed and aggrieved by the same, the father of the petitioner hled appeai before NCLAT, Chennai Bench.

8. Whether the petitioner or his company, namely the Vashist ( ( Implex Private Limited, has received the amounts from the respective banks of the Kosher Pharmaceutical private Limitecl for payment of the salaries of the Kosher pharmaceuticai private Limited, u,hether the petitioner had mis appropriated and mis-used the amounts pertaining to the Kosher Pharmaceutical private 12 Limited of respondent No.2 company for his personal use and whether accused No.1 in collusion with the petitioner diverted the funds of respondent No.2 and his company, namely Kosher Pharmaceutical Private Limited, into the accounts of the petrtioner and other accused is true or not, u'ill come into the light after completion of investigation only. g. Taking into consideration the facts and circumstances of the case and gravity of the offence, this Court is not inciined to grant anticipatory bail to the petitioner/ accused No.S, especially r'vhen the investigation is under progress.

10. Accordingly, the criminal petition is dismissed. Miscellaneous applications, pending if any, shall stand closed. To, //TRUE COPY// SD/- MOHD. ISMAIL DEPUW RE ISTRAR SECT N OFFICER '1 . The Principal Junror Civil Judge cum Metropolitan Magistrate, Rangareddy District.

2. The Station House Officer, EOW Cybe (Cyberabad) P.S , Cyberabad Comm issionerate

3. Two CCs to the Public Prosecutor, High Court for the State of Telangana' Hyderabad [OUT]

4. One CC to Sri S. Nagesh Reddy, Advocate [OPUC] 5. One CC to Sri C. Haripreeth, Advocate [OPUC] 6. Two CD Copies VC/ HIGH COURT DATED:0710412025 ORDER CRLP.No.4194 of 2O25 os iHE S,A l4r c. t 3" loJutl zus (] o Sr>41qr.ri.'.)- DISMISSING THE CRLP o6 5\{