High Court · 2025

Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit ifiled 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 approqriate writ (a) To declare the action of the Respondents in failing to release the sBcurity 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 te(1)(S) of the Constitution of lndia, and (b) To direct the Respondents to forthwith approve the pending auction minutes uploaded on the T-Chits portal, as per statutory requirements, and (C) To direct the Respondents to forthwith releaSe the security deposit amounting to 1,59,00,000 (Rupees One Crore Fifty Nine Lakhs only), d_rly deposited by the Petitioner upon termination of the chit groups, together v/ith interest accrued thereon lA NO: 1 oF 2025 Petition under Section .15.1 CpC praying that in thr: circumstances stated in the affidavit filed in support of the petition, the High Ccur. may be pleased to direct the Respondents to approve the auction minutes arrd release the security deposits amounting to Rs 1,59,00,000 (Rupees One Crore Fifty Nine Lakhs only), in terms of the section 20 of the Act, 1982, irr the right of the representations dated 16. 1 0.2024, submitted by the petitioner Counsel for the Petitioner: SRl. B. VARA pRASADA RAO Counsel for the Respondents: AGp FOR STAMPS AND RE:GtSTRATION The Court made the following: ORDER THE HON'BLE SRI JUSTICE K.SARATH WRIT PETITION No.L2778 of 2o25 ORDER: Heard learned counsel for the petitioner and iearned Assistant Government Pleader for Stamps and Registration appearing for the fespondents. With their consent, this Writ Petition 1S disposed of at the stage of admission itself.

2. This writ petition is fiied praying to a) "...To declare the action of thc' Respondents in failing to releasc the security dcposit rnade in terms of Chapter III of the Chit Fund Rules 2Q08, upon [ermination of the chit groups, as illegal, arbitrary, and a dereliction of statutory duties undcr the Chit Funds Act, 1982, and as being in violaLion o[ Article 19(1) (g) of the ConsLilution of India, and b) To direct the Respondents to forthwith approve the pending auction minutes upioaded on the T-Chits portal, as per statutory requiriments, and c) To direct [he Respondents to lorthwith release the security deposit amountiqg to Rs. 1,59,00,0O0/ - (Rupees One Crore Rifty irline Lakhs only), duly deposited by the Petitione r upon tcrmination 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 c i. SK' J \' W.P.No.12778 of 2025 *.ii under the Companies Act, 2013 representecl by its Director, Sri Kondam I(amalakar and carrying on ch- t fund business in the name of KanakadurgzL Chit Funds Private Limited The petitioner further submits that he has calied for subscription and has diligcntly complied r,r,ith all statutory obligation under the Chit Funds Act, 19t]2 and relevant rules there under including depositing o Fixed Deposit Receipts (FDRs) as security [,tr registered chtt groups u,ith the Assistant Registrar ol Chits, Medc:h{-Malkajgiri 111 terms of Chapter III of A.P. Chit Fund Rules 2008. The petitioner further submits that said cl.its have beer-i depositing in terms of Section 20 of thr: Chit Fund Act, 1982 and the Rules 22 of tht: Rules 20013 is for release of security deposit made under. Section 20 of the Act. On termination of the chits, the petitioner made applicalior.r under Rule 22 of the Rules 2008 and thc: I(egistrar has to follow the procedure as specified of Rule 2zl of Rules 2OOu by displaying a notice inviting obje,ction from thc subscribers to the specified ctrits and there:rfter release the security together interest accrued therein.

4. Learned Counsel for the petitioner u,ould lurther =%8vw ',:'_ ;" 3 SK, J W.P.No.12778 of 2O25 submit that petitioner has. deposited a sum of Rs.1,59,O0,OOO/- for severa,l chit groups during the period July 1905 to January 2O2I and the said chits were terminated. Upon termination of each chit, the petitioner has submitted al 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

76.7O.2024 seeking for release qf 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 t!.re petitioner is that the respondent No.4 has not co4sidered the petitioner,s representation dated 16.10.2024,tili date, hence pray this Court to direct the respondent authorities to consider the I , said representation and pass appropriate orders in a time bound period. 6 Learned Assistant Government Pleader appearlng for respondents submits that if the said petitioner's 4 SK, J w.P.No.l2778 of 2025 representation is stili pending for c()nsideration, the respondent authorities may be directed to dispose of the said representation dated 16.1O.2024 and p'a55 appropriate orciers in accordance with law.

7. In view of the submission made by learned cotlnsel appearing on either side and without expressing arry opinion on the merits of the case, thir; wr:it petition is disposed of, directing the respondent authorities to dispose of the petitioner's representation dated 16.1O.2024 and pass appropriate orders in strictly in accordance with lau'. as expeditiously as possible, preferably \vithin a period of four (4) weeks from the date of receipt of copy of this order and communicate the same to the petitiorLer-.

8. Miscellaneous petitions, pendin14, if aly, in this writ petition sha1l stand closed. No order as; to costs. SD/. S. IVIALLIKARJUNA RAO P,SSISTANT REGISTRAR //TRUE COPY// SEC SMr.,".* To,

1. The Principal. Secretary to Government, Revenue (S,ta nos and Registration), - Secretariat, Hyderabad, Telangana State. 2. The Commissioner and lnsp6ctor General/Registrrrr o[ Chits, Stamps and - Registration. It/.J. Road, Hyderabad. Telanganal 3. The Deputy_ Registrar oi Chits (District -Registrar), fvledchel_lMalkajgiri at Registrar Office, Medchel-Malkaiqiri. Telanoanai. 4. The, Assistant Registrar of Chi[;, Medchdt-fi/alkajgiri at Registration Office, _ Medchel-tvlalkajgiri, Telangana. 5. One CC to SRt. B. VARAPRASADA RAO, Advocate, [OpUC] 6. Two CCs to GP FOR STAMPS AND REGTSTRA-|bN,Hibh Court for the _ State oJ T-elangana at Hyderabad [OUT] 7. Two CD Copies Bt{ qE r. -GlFf':aSf-, -ThGG] tif - '-:E--:----anF. -'.-i.?... - ,riai!- :a ,- HIGH COURT DATED:0210512025 I ORDER WP.No.12778 of 2025 I .,1- ) ) I t'. O ,..1 j c 2 3 AiJE 206 o a) .l // DISPOSING OF THE WRIT PETITION WITHOUT COSTS ( A o 6 ),)