MALLADI RAGHU BABU Vs. STATE OF TELANGANA

JUDGEMENT

(1.) This petition is filed under section 482 Crimial P.C., 1973 with a request to quash/cancel the LOC (Look Out Circular) pending against the petitioner in all International Airports in Cr. No. 1115/2017 of KPHB Police Station, as the investigation is pending with CID Police.

(2.) Respondent No. 2 is the de facto complainant, who lodged a report before the police alleging that on several representations of the petitioner on the project claimed to be conceived by him for providing laundry services to the public at their convenience, a shareholders' agreement was executed on 25.07.2016, wherein they have committed the investment to the tune of Rs. 3,40,00,000.00 on repatriation basis. In terms of the Agreement, the de facto complainant remitted Rs. 71,61,000.00 and Rs. 66,30,000.00 in the bank account of the petitioner towards subscription of Laundry Spot Private Limited equity shares on 30.07.2016 and 01.08.2016 respectively. Subsequently, the petitioner had unilaterally terminated the agreement, vide his letter dated 208.2016, acknowledging the first round of investment by the de facto complainant without mentioning about any allotment of shares to the de facto complainant for the foregoing amounts received by the petitioner. It is also alleged that after re-negotiations, the de facto complainant further remitted an amount of Rs. 1,99,80,000.00 on 23.08.2016 to the account of the petitioner. Thereafter, despite several oral requests, e-mails, reminders, messages, calls etc., the petitioner has neither allotted the shares nor refunded the amounts to the de facto complainant, thereby cheated him. Based on report of the de facto complainant, dated 201.2017, the police registered a case in Cr. No. 1115/2017 of KPHB Colony Police Station, Cyberabad, for the offences punishable under Sections 420 and 406 Penal Code and issued FIR. On the strength of the FIR, the Sub-Inspector of Police, KPHB Colony PS took up investigation and filed final report under Sec. 173 Cr.P.C, 1973 referring the case as civil in nature before the Magistrate. No petition was filed by the de facto complainant questioning the said report. But again the investigation was referred to CID of Police for different reasons. Still the final report filed before the Magistrate is pending for recording, though the investigation is pending with the CID of Police. While the matter stood thus, during pendency of the investigation, the Inspector of Police, Kukatpalli P.S. issued Look Out Circular against the petitioner. Though the petitioner contends that he made a representation to cancel the LOC, but no piece of paper was filed.

(3.) The petitioner filed Crl.M.P. No. 2690/2018 in Cr. No. 1115/2017 of P.S. KPHB for cancellation of LOC issued by the respondent police on various grounds, but a docket order was passed on 04.06.2018 by the XIX Metropolitan Magistrate, Cyberabad, Kukatpally, dismissing the said petition. Aggrieved by the same, as contended by the learned counsel for the petitioner, a review petition was filed with a request to cancel the LOC, mainly on the ground that a final report was filed referring the case as civil in nature, and issuing Look Out Circular is grave illegality, as there is no allegation that this petitioner is avoiding his arrest in connection with the above crime or absconding from the country to avoid facing of criminal trial. In the absence of such material, the learned counsel for the petitioner contended that issue of Look Out Circular is grave illegality and requested this court to cancel or quash the same.