Karnataka High Court

Prasiddhi Chit Funds Pvt Ltd vs State Of Karnataka on 25 October, 2025

Author: Mohammad Nawaz

Bench: Mohammad Nawaz

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                                                             NC: 2025:KHC:42301
                                                         CRL.P No. 6295 of 2025
                                                     C/W CRL.P No. 6199 of 2025

                   HC-KAR


                        IN THE HIGH COURT OF KARNATAKA AT BENGALURU

                           DATED THIS THE 25TH DAY OF OCTOBER, 2025

                                            BEFORE
                          THE HON'BLE MR. JUSTICE MOHAMMAD NAWAZ
                    CRIMINAL PETITION NO. 6295 OF 2025 (482(Cr.PC) /
                                          528(BNSS))
                                              C/W
                        CRIMINAL PETITION NO. 6199 OF 2025 482(Cr.PC) /
                                          528(BNSS))
                   IN CRL.P No. 6295/2025

                   BETWEEN:

                   1.    PRASIDDHI CHIT FUNDS PVT. LTD.,
                         OFFICE AT ASHIRWAD BUILDING,
                         4TH CROSS, SAMPIGE ROAD,
                         MALLESHWARAM, BENGALURU - 560 003,
                         REPRESENTED BY ITS DIRECTOR.

                   2.    SRI. MAHESH S @ MAHESH PRASIDHI
Digitally signed         S/O SRINIVASA MURTHY,
by LAKSHMI T
                         AGED ABOUT 46 YEARS,
Location: High
Court of                 RESIDING AT NO. 112, 4TH CROSS,
Karnataka                MPM LAYOUT, NAGARABHAVI,
                         BENGALURU - 560 072.

                   3.    NIRUPA MAHESH
                         W/O MAHESH S
                         AGED ABOUT 34 YEARS
                         RESIDING AT NO. 112, 4TH CROSS,
                         MPM LAYOUT, NAGARABHAVI,
                         BENGALURU - 560 072.
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                                         NC: 2025:KHC:42301
                                     CRL.P No. 6295 of 2025
                                 C/W CRL.P No. 6199 of 2025

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4.   SMT. HEMALATHA
     W/O ANJANEYALU
     AGED ABOUT 45 YEARS
     RESIDING AT 144/3, 1ST CROSS
     2ND BLOCK, K S COLONY,
     THYAGARAJANAGAR
     BENGALURU - 560 028.
                                             ...PETITIONERS
(BY SRI. TRIVIKRAM S, ADVOCATE)

AND:

1.   STATE OF KARNATAKA
     BY MALLESHWARAM POLICE STATION
     REPRESENTED BY
     STATE PUBLIC PROSECUTOR
     HIGH COURT OF KARNATAKA,
     BENGALURU - 560 001.

2.   SRI. SATHYAPRAKASH
     S/O SARANGAPANI
     AGED ABOUT 57 YEARS
     R/AT NO.57, 12TH 'A' CROSS,
     SINDHI HOSPITAL ROAD, SR NAGAR,
     BENGALURU - 560 027.
                                            ...RESPONDENTS
(BY SRI. ANOOP KUMAR, HCGP FOR R1)

     THIS CRL.P IS FILED U/S 482 CR.PC (FILED U/S 528
BNSS) PRAYING TO QUASH THE ENTIRE PROCEEDINGS IN
CC.NO.29882/2023 ARISING OUT OF THE FIR IN CRIME
NO.39/2017 FOR THE OFFECNES P/U/S. 420 R/W 34 OF IPC
AND SECTION 76 OF THE CHIT FUNDS ACT, 1982 REGISTERED
BY MALLESHWARAM POLICE STATION AND PENDING ON THE
FILE OF THE LEARNED I ADDL. CHIEF JUDICIAL MAGISTRATE,
AT BENGALURU CITY, QUA THE PETITIONERS FOUND AT
ANNEXURE-C AND D.
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                                     CRL.P No. 6295 of 2025
                                 C/W CRL.P No. 6199 of 2025

HC-KAR




IN CRL.P NO. 6199/2025

BETWEEN:

1.   PRASIDDHI CHIT FUNDS PVT LTD
     OFFICE AT ASHIRWAD BUILDING,
     4TH CROSS, SAMPIGE ROAD,
     MALLESHWARAM, BENGALURU - 560 003
     REPRESENTED BY ITS DIRECTOR
     (MAHESH S. PETITIONER NO.2).

2.   SRI. MAHESH S @ MAHESH PRASIDHI
     S/O SRINIVASA MURTHY,
     AGED ABOUT 46 YEARS,
     RESIDING AT NO. 112, 4TH CROSS,
     MPM LAYOUT, NAGARABHAVI,
     BENGALURU - 560 072.

3.   SMT. NIRUPA
     W/O MAHESH S
     AGED ABOUT 34 YEARS
     RESIDING AT NO. 112, 4TH CROSS,
     MPM LAYOUT, NAGARABHAVI,
     BENGALURU - 560 072.

4.   SMT. HEMALATHA
     W/O ANJANEYALU
     AGED ABOUT 45 YEARS
     RESIDING AT 144/3, 1ST CROSS
     2ND BLOCK, K S COLONY,
     THYAGARAJANAGAR
     BENGALURU - 560 028.
                                         ...PETITIONERS

(BY SRI. TRIVIKRAM S, ADVOCATE)
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                                    CRL.P No. 6295 of 2025
                                C/W CRL.P No. 6199 of 2025

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AND:

1.   STATE OF KARNATAKA
     BY MALLESHWARAM POLICE STATION
     REPRESENTED BY STATE PUBLIC PROSECUTOR
     HIGH COURT OF KARNATAKA,
     BENGALURU - 560 001.

2.   GEETHA PRIYA
     W/O PRASHANTH R
     AGED ABOUT 44 YEARS
     R/AT NO.13, 2ND MAIN,
     JYOTHINAGARA, NAGARBHAVI
     BENGALURU - 560 072
                                       ...RESPONDENTS

(BY SRI. ANOOP KUMAR, HCGP FOR R1)


    THIS CRL.P IS FILED U/S 482 OF CR.PC (FILED U/S
528   BNNS)    PRAYING   TO   QUASH    THE   ENTIRE
PROCEEDINGS IN SPL.CC NO.2314/2023 ARISING OUT OF
THE FIR IN CRIME NO.100/2017 FOR THE O/P/U/S 34, 420
OF IPC R/W SECTION 9 OF KPIDFE ACT AND SEC.76 OF
THE CHIT FUNDS ACT, REGISTERED BY MALLESHWARAM
POLICE STATION AND PENDING ON THE FILE OF THE
LEARNED PRINCIPAL CITY CIVIL AND SESSIONS JUDGE AT
BENGALURU AND SPL.COURT FOR KPIDFE ACT AT
BENGALURU (CCH-1) QUA THE PETITIONERS FOUND AT
ANNEXURE C AND D.


       THESE PETITIONS, COMING ON FOR ADMISSION, THIS
DAY, ORDER WAS MADE THEREIN AS UNDER:


CORAM:    HON'BLE MR. JUSTICE MOHAMMAD NAWAZ
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                                       CRL.P No. 6295 of 2025
                                   C/W CRL.P No. 6199 of 2025

HC-KAR


                       ORAL ORDER

Crl.P.No.6295/2025 is filed seeking to quash the

entire proceedings in CC.No.29882/2023 arising out of FIR

in Crime No.39/2017 registered at Malleshwaram Police

Station, Bangalore City, for the offence punishable under

Section 420 read with 34 of IPC and Section 76 of the Chit

Funds Act, 1982.

2. Crl.P.No.6199/2025 is preferred seeking to

quash the entire proceedings in Spl.CC.No.2314/2023,

arising out of Crime No.100/2017 registered at

Malleshwaram Police Station, Bangalore City, for the

offence punishable under Section 420 read with 34 of IPC,

Section 76 of the Chit Funds Act, 1982 and Section 9 of

KPIDFE Act.

3. It is contended by the learned counsel for the

petitioners that the petitioners are one and the same in

both the FIRs, there are multiple FIRs registered on the

same set of allegations and in the case on hand, two

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separate charge sheets are filed and the same hits the

principle of 'doctrine of sameness' and therefore, the

proceedings are liable to be quashed.

4. The learned counsel for the petitioners has

relied on the judgments of the Hon'ble Supreme Court in

the case of T.T. Antony V. State of Kerala and Others

reported in (2001) 6 SCC 181 and Surendar Kaushik

and Others V. State of U.P. reported in (2013) 5 SCC

148.

5. The learned High Court Government Pleader

has contended that even though the accused are one and

the same, the incidents are of different time period, the

complainants are different and the allegations pertains to

different chits. He therefore contended, in that scenario,

there is no illegality in filing different charge sheets and on

that ground the proceedings cannot be quashed.

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6. In Crime No.39/2017 of Malleshwaram Police

Station, the complainant by name Sathya Prakash C.S.

has alleged as under:

"I had met one of the officials of Prasiddhi Chits Pvt. Ltd i.e., Mr.Rangaswamy in a business meeting and he had introduced me to his Company and had widely advertised that his Company is serving the community in cultivating saving habits though chit groups and helping them to meet their financial needs from 2005. He persuaded me in such a way that my amount will be secured in investing in Prasiddhi Chits and that I would be benefited with it. Mr.Rangaswamy persuaded me to visit their office and meet the Directors of their Company. I met their Directors i.e., Mr.Mahesh Prasiddhi, Mrs.Nirupa Mahesh and Mrs.Hemalatha their Finance Manager and Mrs.Rashmi Gowda, the Assistant Finance Manager and they convinced me that I will grow rich my securing my amount and also that theirs is the safest chit in entire Karnataka which has been approved by the Government. Believing their words I was felt with no other options but to enroll myself in the above chit group.

I have enrolled myself in three chits. One chit amount was Rs.5,00,000/-(Rupees Five Lakhs) for which my enrolment number as per the Company records is MFL-17. The Second chit was Rs.3,00,000/- (Rupees Three Lakhs) for which my enrollment number as per the Company records is MTL-

B and the third chit was also for Rs.3,00,000/- (Rupees Three Lakhs) for which my enrolment number is MTL-OB. I was initially paying Rs.30,000/- per month towards all three chits and till today as per the company records I have paid Rs.7,90,000/- (Rupees Seven Lakhs ninety Thousand only). I bid the amount in the month of October 2016 and their Finance Manager Mrs.Hemalatha requested me to collect the amount on 30.10.2016. However, till today I have been running around to their office everyday requesting them to make payments but they are evading my payments with one or the other reason.

Mr.Rangaswamy recently informed me that the

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Company Directors have all recently invested all the chit amount in Real Estate and have no money to pay. The Company has cheated me of my hard earned money and have made illegal gains and wrongful loss to me. Hence I request your kind authority to take appropriate criminal actions against the Company Directors who have cheated me."

7. In Crime No.100/2017 of Malleshwaram Police

Station, the complainant by name Geetha Priya has

alleged as under:

" I was introduced to Prasiddhi Chit Funds Pvt. Ltd through a family friend who introduced me to Mr.Rangaswamy who is the Manager of the Company. The Company had widely advertised that it was serving the community in cultivating saving habits through chit groups and helping them to meet their financial needs from 2005. Mr.Rangaswamy persuaded me in such a way that my amount will be secured in investing in Prasiddhi Chits and that I would be benefited with it. Mr.Rangaswamy persuaded me to visit their office and meet the Directors of their Company. I met their Directors i.e, Mr. Mahesh Prasiddhi, Mrs.Nirupa Mahesh and Mrs.Hemalatha their Finance Manager and Mrs.Rashmi Gowda, the Assistant Finance Manager and they convinced me theirs is the safest chit in entire Karnataka which has been approved by the Government. Believing their words I was left with no other options but to enrol myself in the above chit group.

I have enrolled myself in one chit of Rs.3,00,000/- (Rupees Three Lakhs) for which his enrolment number as per the Company records is MTL-B and the said chit was for a period of thirty months. I was initially paying Rs.10,000/- per month towards the chit amount and till today as per the company records the Company had to pay Rs.2,80,000/- (Rupees Two Lakhs Eighty Thousand Only). I bid the chit amount in the month of September 2016 and their Finance Manager Mrs.Hemalatha requested me to collect the entire amount on

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30.10.2016. However, till today I have been running around to their office everyday requesting them to make payments but they are evading my payments with one or the other reason. I have approached the Company and met with their Directors several times who have always assured of making payments but never kept up with their words. I have been running around to their office everyday and the staff has several times abused me and even tried to manhandle me stating that the Company Directors have all recently invested all the chit amount in Real Estate and have no money to pay. The Company has cheated me of my hard earned money and have made illegal gains and wrongful loss to me. The Company staff have abused me without even considering that I am a woman. Hence I request your kind authority to take appropriate criminal actions against the Company Directors who have cheated me."

8. The police after concluding the investigation

have filed a separate charge sheets. A perusal of the

averments in the complaint and the charge sheet show

that, though the accused are one and the same and the

matter pertains to chit amount paid by the respective

complainants, who are cheated by the accused, the

complainants/victims are not only different but even the

transaction relates to different period. The police have

conducted separate investigation in respect of both the

cases and filed separate charge sheets. Multiple FIRs are

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