High Court · 2025

Petition under Article 226 of l||e constitutron of lndia praying that in the circumstances stated in the affidavit filed therewith, the High court may be pleased to issue an order, direction or writ more particularly one in the nature of Writ of Mandamus or any other appropriate writ a) To declare the action of the Respondents in failing to release the security deposit made in terms of Chapter lll of the Chit Fund Rules, 2008, upon termination of the chit groups, as illegal, arbitrary, and a dereliction of statutory duties under the chit Funds Act, 1982, and as being in violation of Article 19( 1) (g) of the Constitution of lndia, and, .+i. b) To direct the Respondents to forthwith approve the pen,Jing auction minutes uploaded on the T-Chits portal, as per statutory requirementjj, and, c) To direct the Respondents to forthwith rerease the securiiy deposit amounting to 3'37'00,000 (Rupees Three crore Thirty-seven Lakhs onry), dury deposited by the Petitioner upon termination of the chit groups, together with interest accrued thereon. lA NO: 1 OF 2025 Petition under section r sl cpc praying that in the oircumstances stated in the affidavit fired in support of the petition, the High court may be preased to direct the Respondents to approve the auction minutes and rerease the security deposits amounting to Rs. 3,37,00,000 (Rupees Three (lrore Thirty_ Seven Lakhs only), in terms of the Section of Act 1982, in the light of the representations dated 16 10.2024, submitted by the petitione:r. Counsel for the petitioner: SRI B.VARA PRASADA RAO Counsel for the Respondents: AGp FOR STAMPS & REGIS IRATION The Court made the following: ORDER :,wry I I I l THE HON'BLE SRI WSTICE K.SARATH WRIT PETITION No.l 2855 of 2025. ORDER: Heard learned counsel for the petitioner and learned Assistant Government Pleader for Stamps and Registration appearing for the respondents. With their consent, this Writ Petition is disposed of at the stage of admission itself. 2 This writ petition is fiied praying to a) "...To declare the action of the Respondents in failing to release the security deposit made in terms of Chapter III of the Chit Fund Rules 2O08, upon termination of the chit groups, as illegal, arbitrary, and a dereliction of statutory duties under the Chit Funds Act, 1982, and as being in violation of Articlc 19(1) (g) of the Constitution of India, and b) To dircct the Respondents to for[hwit.h approve the pending auction minutes uploadcd on the T-Chits portai, as per statutory requirements, and c) To direct the Respondents to forthwith rclease the security deposit amounting to Rs.3,37,00,0O0/ - (Rupees Three Crore Thirty Seven Lakhs only), duty deposited by the Petitioner upon termination of the chit groups, together with interest accrued thereon..." 3 Brief facts rising to file this writ petition are that petitioner is a registered Chit fund Company incorporated 2 sK, J W.P.No.l2855 of 2025 under the Companies Act, 2013 represented by its Director, Sri Kondam Kamalakar and carrying on chit fund business in the name of Kanakadurga Chit Funds private Limited. The petitioner further submits that he has called for subscription and has diligently complied with all statutory obligation under the Chit Funds Act, 19g21 and relevant rules there under including depositing of Flxed Deposit Receipts (FDRs) as security for registered cl,it groups with the Assistant Registrar of Chits, Rangaredrly in terms of Chapter III of A.P. Chit Fund Rules 200g. The petitioner further submits that said chits have been depositing in terms of Section 20 of the Chit Fund Act, l9B2 and the Rules 22 of the Rules 2OO8 is for release of security deposit made under Section 20 of the Act. On ternrination of the chits, the petitioner made application under Rule 22 of the Rules 2OO8 and the Registrar has to follow the procedure as specified of Rule 24 of Rules 2008 by displaying a notice inviting objection from the subscribers to the specified chits and thereafter release the security together interest accrued therein.

4. (' Learned Counsel for the petitioner would further W.-.Y 3 SK, J W.P.No.12855 of 2O25 submit that petitioner has deposited a sum of Rs.3,37,0O,OOO/- for severa,l chit groups during the period January 2O18 to November 2O2L and the said chits were terminated. Upon termination of each chit, the petitioner has submitted an application to the registrar for release of security deposit along with the declaration statement that the petitioner has cleared all dues to its subscribers. Subsequently, petitioner made application dated

16.1O.2024 seeking for release of security deposit, but till date the respondent No.4 has not considered the petitioner's representation. Aggrieved by the same, this writ petition is filed. 5 Learned Counsel for the petitioner would submit that the limited grievance of the petitioner is that the respondent No.4 has not considered the petitioner's representation dated 16.10.2024 till date, hence pray this Court to direct the respondent authorities to consider the said representation and pass appropriate orders in a time I bound period. 6 Learned Assistant Government Pleader appearing for respondents submits that if the said petitioner's + SK, J w.P.No.12ASS of 2O2S representation is still pending for conrsideration, the respondent authorities may be directed to dispose of the said representation dated 16. lO.2024 arld prlss appropriate orders in accordance with law. 7. In view of the submission made by learned counsel appearing on either side and without r xpressing any opinion on the merits of the case, this vrrit petition is disposed of, directing the respondent author.ities to dispose of the petitioner's representation dated r(t.Lo.2o24 and. pass appropriate orders in strictly in accordance with law, as expeditiously as possible, preferably wittrin a period of four (4) weeks from the date of receipt of cop,y of this order and communicate the same to the petitioner. 8. Miscellaneous petitions, pending, rl. any, in this writ petition sha_ll stand closed. No order as ro costs. //rRUE coPY// ,'=1i'"i^-EEf,t+ilXA S€crtoru oFFtcER *s,.5,:?,:,|ii rt ??:"J3fl i%ffJ:l:Hn t, Re ve n ue ( S ta' m p s a nd Re g is ka tio n ), IlE,?,:T#: ;"j T.:?l,i?:o"?:L"; 3fJ,Bi,i; flls i st ra r o r c h its, S ta m p s a nd 5?r""3"d$[#Sl',i:%Bl3jl.: ( District Res istra r), Ra nsra redd y at Resistra r #r#::3i:1t" *?H::,. or chits, Ransareddy at Resistration orrice, To 1 2 3 t S. One CC to SRt B.VARA PRASADA RAO, Advocate tOpUCl u ll:?":Pi"l:"ff"I.tT,rirjy::,AUr. REGrsrRArroN Hish court ror the 3:iw'""0" ---q*d6EB.,r'!.-'z_.:!61!- {1: <:-*'ri.rt*S!{rnr,ie-i,.::?16r=,::!5. #*, l -.-.1' .-*J----.,-.. ==-O.... :."tr.iiq{i i 'l HIGH COURT DATED:0210512025 ORDER WP.No.12855 of 2025 ir.E SI,r ?C ( c .\ 2 6 ,tutl 2n2l .rilr: -t'_-- - ..---J_ DISPOSING OF THE WRIT PETITION, WITHOUT COSTS t : i )