VYAMASANI MADHAVI Vs. STATE OF TELANGANA

JUDGEMENT

(1.) This Criminal Petition is filed by the petitioners-accused Nos.2 and 3 seeking to quash the criminal proceedings against them in C.C.No.4 of 2023 pending on the file of the learned Principal District and Sessions Judge, Hanumakonda, registered for the offences under Sec. 420 read with Sec. 34 of the Indian Penal Code (hereinafter referred as 'IPC') and Sec. 5 of the Telangana Protection of Depositors of Financial Establishments Act (hereinafter referred as 'the TSPDFE Act').

(2.) Heard Sri Y.Soma Srinath Reddy, learned counsel, representing Sri D.Shashi Preetham, learned counsel for the petitioners and Smt.S.Madhavi, learned Assistant Public Prosecutor for the State-respondent No.1. Even after service of notice, none appeared on behalf of the unofficial respondent No.2. Perused the record.

(3.) In brief, the case of the prosecution is that accused No.1 is the Chairman of Sudhathri Chit Funds, while the petitioners-accused Nos.2 and 3 are the Managing Director and Executive Director of the said Chit Fund Company, respectively. The respondent No.2 and his wife, who are retired Government employees, had received certain amounts as retirement benefits. With the intention of making a secure investment for their future, they were exploring various investment options and, in that process, came into acquaintance with the accused No.1. By virtue of the said acquaintance, the accused No.1 introduced the petitionersaccused Nos.2 and 3 to the respondent No.2 and his wife, and all the accused induced them to invest in their chit schemes, assuring good returns. Believing their representations, the respondent No.2 subscribed to three chits of Rs.10,00,000.00 each and six chits of Rs.5,00,000.00 each, and regularly paid the installments as per the rules and regulations of the chit. Subsequently, the accused Nos.1 to 3 introduced another scheme offering an attractive rate of interest between 24-30%, and on such inducement, the respondent No.2 and his family members invested a further sum of Rs.19,75,500.00, apart from a total investment of Rs.56,36,400.00 in the nine chits. Upon completion of the chits, when the respondent No.2 and his family members sought to encash the maturity amount of Rs.76,11,900.00, the accused Nos.1 to 3 deliberately delayed, evaded, and postponed repayment under various pretexts and failed to discharge the legally enforceable liability. Thereby, the accused Nos.1 to 3 had committed the offences under Sec. 420 read with 34 of IPC and Sec. 5 of the TSPDFE Act.