HON’BLE SRI JUSTICE SAMUDRALA GOVINDARAJULU CRL.PETITION NO.2384 OF 2010 Date:30.03.2010 Between: K. Venkanna …..Petitioner/A-5 And: The State of A.P., rep. by its PP and another …..Respondents. HON’BLE SRI JUSTICE SAMUDRALA GOVINDARAJULU CRL.PETITION NO.2384 OF 2010 ORDER: This petition is filed by the 5th accused for quashing proceedings in Crime No.134 of 2009 of Central Crime Station, South Zone, Hyderabad relating to offences punishable under Sections 420, 406 IPC and Sections 3 and 5 of the Andhra Pradesh Protection of Depositors of Financial Establishments Act, 1999 (in short, the Act). Subject-matter of the crime relates to affairs of Sri Sai Krupa Finance Company which was running chit fund as well as finance business and which is stated to have been closed after collecting amounts from the 2nd respondent/defacto-complainant and other customers. The petitioner/A-5 is husband of A-1. According to the petitioner, he has nothing to do with affairs of Sri Sai Krupa Finance Company. During the course of investigation, A-1 to A-4 and A-6 to A-10 were arrested by the police. The petitioner has been absconding since the time of registration of the case on 26.05.2009. Investigation of the case is pending. As can be seen from gist of evidence collected by the police noted in the remand case diary dated 10.07.2009, originally A-1 to A-7 were running Sri Sai Krupa Finance and Chits from the year 1992 to the year 2005 without licence or registration. A-5 to A-7 who are employees of B.S.N.L were looking after all financial affairs of the establishment by way of enrolment of subscribers, conducting monthly auctions and collection of deposits. It is alleged that to avoid legal problems, A-5 to A-7 registered the firm in the names of their respective wives A-1 to A-3 and another partner A-4. As per Section 5 of the Act, in case of default in return of deposit or payment of interest on deposit, “every person responsible for the management of the affairs of the financial establishment including promoter, Manager or Member of the financial establishment” is liable for punishment. Therefore, whether the petitioner/A-5 is a promoter or was in management or was in charge of affairs of the financial establishment, are questions of fact which have to be gathered by the investigating officer during investigation and presented before the Special Court. Simply on mere allegation that the petitioner is not concerned with affairs of Sri Sai Krupa Financial Company, without any proof or material, this Court cannot grant any relief at this early stage and cannot quash proceedings exercising powers under Section 482 Cr.P.C. Hence, the petition is dismissed. ____________________________________ SAMUDRALA GOVINDA RAJULU,J. Date:30.03.2010. HON’BLE SRI JUSTICE SAMUDRALA GOVINDARAJULU CRL.PETITION NO.2384 OF 2010 Date:30.03.2010 Gk.