Telangana High Court
Nagabathini Ravi vs The State Of Telangana on 27 January, 2025
1
THE HONOURABLE SRI JUSTICE K.SURENDER
Crl.P.Nos.8417 OF 2019 & 6673 OF 2020
COMMON JUDGMENT:
1. Crl.P.No.8417 of 2019 is preferred by A-5 and
Crl.P.No.6673 of 2020 is filed by A-1 to A-4.
2. Since both the Petitions are filed questioning the
proceedings in C.C.No.6 of 2019, on the file of Principal
Sessions Judge, Khammam, both the Petitions are heard
together and disposed off by way of this common order.
3. Heard Sri S.S.Prasad, learned senior counsel representing
C.Sindhu Kumari, learned counsel on record appearing for the
A-5 and Sri N.Jeevan Kumar, learned counsel appearing for A-2
to A-4 and Sri M.Vivekananda Reddy, the learned Assistant
Public Prosecutor for respondent-State and Sri J.Azad Chendra
Shekar, learned counsel appearing for respondent No.2.
4. The Wyra Police filed charge sheet against A-1 to A-5 for
the offences under Sections 406 and 420 of IPC and Section 5
of Protection of Depositors of Financial Establishments Act,
1999 and Section 76 of Chit Funds Act, 1982.
5. Briefly, the case of the prosecution is that A-1 to A-4 are
partners in 'Sreshtha Chit Fund Company' situated at Wyra,
Khammam District. They were running chit fund business
which was registered.
6. On 21.12.2018, the de-facto complainant who was
member of one of the chits being run by the Chit Fund
Company, filed complaint stating that the said Chit Fund
Company deceived complainant and several others by not
returning their deposits which accrued during chit transactions
and also amounts which were deposited with the Company.
Specifically, the de-facto complainant joined in a chit for Rs.5
lakhs during the year, 2017 and paid monthly subscription.
Son of the complainant also joined the chit which was being
run for Rs.10 lakhs. Likewise, his son-in-law also joined the
Chit Fund Company as a member and subscribed to specific
chits being run by the Company. However, A-1 closed Sreshtha
Chit Fund Company and escaped with his staff members
namely A-2 to A-4. According to the complaint, Rs.4½ crores
were collected from the customers/members and A-1 to A-5
have absconded.
7. On the basis of the complaint, the Police Wyra registered
the case and investigated into the allegations. Documents were
collected from the Sub-Registrar of Chits regarding chits being
run by A-1 to A-4. Accordingly, the accused were arrested. On
the basis of their confession, records were seized. According to
the investigation, A-1 to A-4 are the partners in Sreshtha Chit
Fund Company and A-5/ petitioner in Crl.P.No.8417 of 2019
was the man behind the said chits being run by A-1 to A-4. A-1
is the foreman of the Company. Letter was also filed which is
dated 23.08.2014 addressed to the Assistant Registrar of Chits,
Khammam. In the said letter, the names of A-1 to A-4 were
shown as partners in Sreshtha Chit Fund Company and
informed that A-1 would act as foreman of the Company. It is
further case that believing the partners/collection agents A-2 to
A-4, several deposits were made by the victims/witnesses. The
victims are L.Ws.1 to 6 and L.Ws.8 to 270.
8. It is further case that Rs.4½ crores was approximately
payable and due to the depositors. Accordingly, on the basis of
both oral evidence of around 268 subscribers and documents
which were collected during investigation, petitioners/A-1 to A-
4 and A-5 were charge sheeted.
9. Learned Senior counsel appearing on behalf of the
petitioner/A-5 would submit that even according to the
investigation, Sreshtha Chit Fund Company was being run by
A-1 to A-4. None of the witnesses stated anything against A-5.
In fact, no documents are filed to substantiate that A-5 was
part of any transaction in the Chit Fund Company. In the
absence of there being any evidence to suggest that A-5 was
part of Chit Fund Company, the question of proceeding against
A-5 in the criminal case does not arise.
10. On the other hand, learned counsel appearing for
respondent No.2/complainant would submit that there was a
large scale fraud of Rs.4½ crores. Documents were collected by
the Investigating Agency and placed on record, which clearly
reflect that hundreds of members were cheated in the chit
transactions. However, counsel fairly stated that witnesses
have not specifically stated anything about A-5, but stated
against A-1 to A-4. Counsel also relied on the letter dated
23.08.2014 addressed to the Assistant Registrar of Chits, which
reflects A-1 to A-4 as partners in the Chit Fund Company.
11. Even according to the documents relied on by the counsel
for the respondent No.2, only A-1 to A-4 were part of Sreshtha
Chit Fund Company. It was A-1 who was the foreman of the
Company.
12. Though all the persons who are responsible for running
the Chit Fund Company can be made as accused, apart from
the partners/Directors of a Firm/Company, however, specific
role has to be attributed to said persons to show that they were
responsible for day to day affairs of the Chit Fund Company
and that they collected any deposits or asked any of the
members to join the chit group.
13. Since it is admitted that there was no active role played by
A-5, even according to the counsel for the complainant, the
question of criminal proceedings against A-5 which is only on
the basis of confession made by A-1 that A-5 was helping to run
Chit Fund Company, cannot be made basis to continue
criminal proceedings against A-5.
14. Specific allegations are made against A-1 to A-4.
Accordingly, Crl.P.No.6673 of 2020 stands dismissed.
Crl.P.No.8417 of 2019 is allowed.
_________________
K.SURENDER, J
Date: 27.01.2025
dv
THE HONOURABLE SRI JUSTICE K.SURENDER
Crl.P.Nos.8417 OF 2019 & 6673 OF 2020
Dt. 27.01.2025
dv
