SMARTEOIN FINANCIALS PVT. LTD. Vs. DEPUTY DIRECTOR

JUDGEMENT

(1.) This Criminal Petition is filed under Sec. 482 of Code of Criminal Procedure, 1973 (for short 'Cr.P.C') to quash the proceedings against the petitioner/accused in ECIR/HYZO/04/2021 dtd. 18/1/2021.

(2.) The brief facts of the case are that the petitioner- Company, represented by Mr. Shashank Mudhra, is engaged in microfinance business in India. It is being investigated by the Enforcement Directorate based on an FIR filed under various Sec. , including 420, 506 of IPC, Sec. 67 of IT Act, 2008, and Sec. 3 of Telangana Money Lenders Act, 1349F. The Company seeks to quash proceedings under the Prohibition of Money Laundering Act (PMLA), 2002, stemming from ECIR No.ECIR/HYZO/04/2021. The FIR, registered by Cyber Crime, Cyberabad, implicated the petitioner-Company i.e., Smartcoin Application. The Company aims to nullify these proceedings initiated by respondent No.1.

(3.) On 23/12/2020, Sri K. Satish filed a complaint with Cyber Crime Police Station, Cyberabad Commissionate, leading to FIR No.1187 of 2020. He alleged that after downloading Cash TM, a microloan app, and uploading identification documents, he received a loan of Rs.2,292.00 but was harassed by unknown persons demanding repayment. They allegedly accessed his contacts, sent abusive messages, and defamed him. Although Smart Coin, belonging to the Petitioner, was mentioned, it is clarified that Cash TM and Smart Coin are unrelated. Based on the FIR, Respondent No.1 registered an ECIR under PMLA, 2002, on 18/1/2021.