1 of 28 CC No.420/2011
IN THE COURT OF THE CHIEF METROPOLITAN MAGISTRATE, HYDERABAD.
Present: RADHIKA JAISWAL
CHIEF METROPOLITAN MAGISTRATE,
HYDERABAD
Dated, this the 24th day of April, 2024
CC. No.420 of 2011
Between:
State Through The Inspector of Police,
WCO TeamII, CCS, Hyderabad... Complainant.
AND
Kanamarlapudi Surender Babu @ Gupta, S/o. K.Venkateshwarulu, Managing Director , M/s. Genius Talent.com, R/o.H.No.24215, Bramhan Bazar, Ponnur, Guntur District.Accused.
This case is coming before me for final hearing on dt.03042024 in the presence of Sri. M. Sudhakar, Sr.Asst.Public Prosecutor for the State and of Sri.A.N.Rao, Counsel for accused and upon perusing the material on record, the Court delivered the following:
J U D G M E N T
1.The Inspector of Police, WCO TeamII, CCS, Hyderabad has filed the charge sheet against the accused in Cr. No.8/2009, for the offences punishable under Sections 420 & 406 of IPC and Sec. 4 of Prize Chits & Money Circulation
Act, (Banning),1978.
2.The brief facts of the prosecution case is that on 05012009, at 1800 hours, received a report from Sri. Merugu Srinvias alleging that he along with LW2 &
LW3 and others are the victims and participated in various schemes of M/s.
Genius Talent.com, division of Niranthara Amrutha Varshini Marketing Pvt.Ltd., situated at Ashok Nagar Hyderabad, wherein thousands of common people participated and invested lakhs of rupees in various schemes in the above company on the version of accused, who offered high benefits to all the customers and later accused closed his company absconding. Therefore, he requested to take 2 of 28 CC No.420/2011 necessary action against him
3)Basing on the above complaint, LW36/Shareef Ahmed, Si of police Chair
Duty, CCS, Hyderabad registered a case in Cr.No.8/2009, U/Sec. 420 IPC and
Sec. 4 of Prize Chits & Money Circulation Act, (Banning),1978. During the course of investigation, LW41/PW26/B.Siva Rami Reddy, SI of police, WCO, TeamII
CCS Hyderabad, examined and recorded the statements of LW1 to LW3 and interrogated the accused who voluntarily confessed his guilt. LW41/PW26 affected his arrest and issued memo. Later, LW41/PW25 summoned two mediators, LW34/Vangala Venu & LW35/Gangisetty Vamshi and recorded his confession statement. During confession, accused stated that on interrogation he voluntarily confessed that he had collected amounts on various schemes from the public by offering high benefits/incentives. LW41 effected his arrest and issued arrest memo. In the confession the accused K. Surendra Babu confessed that he established a company by name Niranthara Amrutha Varshini Marketing Pvt. Ltd., at rented premises SRT 394, Jawaharnagar, Ashoknagar, Hyderabad and registered same at Registrar of Firms, Chikkadpally, Hyderabad. In this scheme the customer has to purchase home products for Rs.125/ and they would get
Rs.75/ for joining three customers, the first customer also get Rs.10/ for joining new customer each. Previously he paid incentives to all the customers regularly. In this scheme he gathered about 20,000 customers and paid them incentives. While continuing this scheme, he started a new scheme on the name of Genius
Talent.com(Pancharatna). In this scheme the customer has to purchase a home appliances product for Rs.7,002/ after purchasing the product the customer would get Rs.1,000/ per month as incentives for 12 months. In this scheme if a customer pays Rs.5,000/ without purchasing product he also gets Rs.1,000/ per month for 12 months. In this scheme he gathered more than 20,000 customers and made business for Rs.72 crores from which he paid Rs.60 crores to the 3 of 28 CC No.420/2011 customers as their benefits. During the above business, he purchased land about 40 acres in Choutuppal near Pedda Kaparthi bus stand for Rs.8 lakhs per acre on the name of customers i.e. Kasam Dayanandam, K.Shyam Prasad,
R.Venkateshwarlu and others and his name in the month of December 2006.
Later the land which was on his name transferred to customers and registered at office of SRO Choutuppal. He also entered into an agreement for purchasing land about 120 acres at Kalvakurthy Mandal with Sri Laxma Reddy and others and paid them Rs.1.4 crores to them. In this agreement, he got registered 40 acres of land on his name and the remaining land could not get registered as there is no sufficient amount for paying to the land lords. Later, 40 acres of land also transferred on the customers i.e. Sri K. Venkateshwarulu and Sri. Rammohan and others at SRO Kalvakurth. Since there is no proper business and customer approaching for his monthly benefits, as such, he left the business by leaving all the furniture and records and left Hyderabad for Guntur in the month of
April,2007 and seized CD, Pan card, mobile phones, from the possession of accused in the presence of mediators. On dt.712009, LW42 took over the investigation from LW1 and taken the accused for police custody for 8 days and recorded confessional statement before the mediators. In pursuance of the confession of the accused seized 1) Xerox copy of agreement between the accused and Samudrala Kalpana, 2) Hard copy of Data of the business of the accused, 3)
Two CDs containing business of the accused, 4) Copy of Memorandum of Article of
Association of Genius Real Enclave Pvt. Ltd., and 5) Receipt of Vishanavi Lodge, which were kept in the bag of the accused at Vaishnavi Lodge, Secunderabad in presence LWs 34 & 35 under cover of seizure report and also recorded the statement of the LodgeManager LW24. LW42 examined the LW25 Ballam
Madhukar who is the owner of the premises No.SRT 394, Jawahar Nagar, Ashok
Nagar, Hyderabad, where the accused ran the business of Multi Level marketing on the name of Genius Talent.com and recorded his detailed statement. The LW42 4 of 28 CC No.420/2011 taken the accused to his native place Returu village and inlaw's house at Ponnur of Guntur District and could not found any property purchased by him on his name or his relatives out of misappropriate amount. After making efforts to know the property to identify the properties the LW42reproduced the accused before the Hon'ble XII Addl. CMM Court, Hyderabad and got remanded to judicial custody. LW42 tried to identify the properties at Sub Registrar Offices Choutuppal of Nalgonda District, but could not find any property on the name of accused. All efforts have been made to identify the property of the accused on his name and his relatives name, which purchased out of misappropriated amount, but in vain. LW 42 recorded the statement of LWs4 to 15 who are the investors and victims of the accused company. LW42 also collected Banks statements from LWs 28 to 30 who are the managers of ICICI Bank, Himayathnagar branch, Hyderabad, ING Vysya
Bank, Chikkadpally branch, Hyderabad and Gokul Cooperative Urban bank Ltd.,
Monda Market, Secunderabad. LW 42 also collected certified copies of records from Registrar of Companies pertains to M/s Niranthara Amrutha Varshini
Marketing Pvt. Ltd., Genius Real Enclave Pvt. Ltd., While the investigation was in progress, the LW4 filed a private complaint before the Hon'ble Spl. Judge for
Offences under A.P. Protection of Depositors Financial. On that LW37/ registered in Cr.No.24/2009 u/s 420,506 IPC & 5 of APPDFE Act 1999 at Alwal (Haliya) PS.
LW38 took up investigation and examined the LWs 4, 26 & 27. LW38 after taking legal opinion the case file transferred to CCS, Hyderabad on point of jurisdiction through C.P. Hyderabad. Where the LW39 reregistered case vide Cr.No.322/2009 u/s 420,506 IPC & 5 of APPDFE Act 1999 and entrusted the investigation to WCO
TeamII, CCS, Hyderabad. LW40 summoned LW4 and recorded his detail statement. LW42 taken out the hard copies (print outs) of the ata from the seized
C.Ds and attested the same. After assuming charge of WCO TeamII, LW43 summoned the LWs 16 & 17 invested the amount in the company of the accused and became victim, examined m and recorded their statements. LW43 also 5 of 28 CC No.420/2011 summoned LWs 18 to 23 examined them recorded their statements. LW18 and
LW19 invested in the company of the accused also they mobilized the other investors of family members and friends circle in the Multilevel marketing business of accused and became victims, LW20 and LW21 are victims of accused and also
Commission Agents in the land dealing between accused and land records, LW22 is an Agent who brokered the land dealing between accused and LW23 and LW23 who is he husband of Samudrala Kalpana who sold the land to accused registered the land on the name of the investors and later accused cancelled the land agreement for remaining land. LW43 also collected account statement of account
No.00801020008270 belongs to M/s Genius online.net in Axis Bank, Greenlands,
Begumpet Branch Hyderabad from LW31, in which the accused made total transaction of Rs 5.21.15968 between 2052005 to 3132009, LW43 also collected certified copies of records from LW32 and LW33, who are the Sub
Registrar of Kalvakurthy of Mahboob Nagem District and Sub Registrar of
Choutuppal, Nalgonda District respectively. In both the cases ie, Cr.No.8/2009 and Cr.No.32/2009 the accused and nature of offence are common, as such the above cases have been clubbed and the charge sheet is filed. After completion of the investigation, LW43 he filed charge sheet against the accused for the offences
U/Sec.420 & 406 of IPC & Sec. 4 of Prize Chits & Money Circulation Act, (Banning),1978.
4. Based on the material available, the case was taken on file for the offence under Sections 420 of IPC & Sec. 4 of Prize Chits & Money Circulation
Act, (Banning),1978 against the Accused.
5.On appearance of Accused copies were served U/s 207 Cr.P.C. The accused was examined under Section 239 Cr.P.C., A charge the offence under
Section 420 of IPC & Sec. 4 of Prize Chits & Money Circulation Act, 6 of 28 CC No.420/2011 (Banning),1978 was framed against Accused , read over and explained to him in his vernacular language, for which, he denied the charge, pleaded not guilty and claimed to be tried.
6.In pursuance of the case of the prosecution, cited (43 ) witnesses and got examined Pws.1 to 27, got marked Ex.P1 to P25 and MO1 to MO4. On behalf of defence, DW1 was examined and got marked Ex.D1 & D2.
7.After completion of prosecution evidence, accused was examined under
Section 313 Cr.P.C by explaining the contents of incriminating evidence available against him, for which he denied and reported no defence evidence.
8. Heard the learned APP for the prosecution and the learned counsel for the accused.
At the time of arguments, the learned APP submitted that by the evidence of prosecution witnesses, who are victims in this case have deposed against the accused stating that how the accused cheated them and taken money from them and documents filed by the prosecution also proved and supported the case of the prosecution , as such, he prayed to convict him
Whereas, on the other hand, both the learned defence counsel by filling written statement submitted that the ingredients of charge against the accused is not attracted and no documents filed by the prosecution to support the version of the prosecution witnesses neither any independent witness was cited nor any bank officials were examined to prove the allegation made against the accused and in support of his written statement and he also filed citation to support his contention, as such he prayed to acquit the accused.
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9. NOW THE POINT FOR DETERMINATION IS:
“Whether the prosecution has proved the guilt of the Accused for the offence punishable u/Secs.420& 406 of IPC & Sec. 4 of Prize Chits & Money Circulation Act, (Banning),1978, Beyond all reasonable doubt?”
Point:
10. The prosecution to prove its case has examined Pws.1 to 27, of which PW1 to PW3 are the complainants and victims inCr.No.8/2009. PW3 is the complainant and victim in Cr.No.322/2009. PW4 to PW6 are the victims. PW7 & PW11 are the victims and land agent. PW8 is the Manger of Vaishnavi Lodge, where accused stayed. PW9 is the owner of the premises where accused run the business. PW10 is the land agent. PW12 is the landlord. PW13 & PW14 are circumstantial witnesses. PW15 to PW17 are the bank officials,who speak about the transaction of the accused PW18 and 19 are SubRegistars. PW20 is the panch witness for confession panchanama of accused. PW21 is the Investigating officer and registered a case on the complaint of J.Vekataeshwarlu in
Cr.No.24/2009 PW22 is the Investigating Officer, who is the 1st Investigating
Officer in Cr.No.24/2009 . PW23, who is the Investigating officer, who re registered the case in Cr.No.322/2009.PW24 who is the SI of police and recorded the statement of LW4 in Cr.No.322/2009. PW25, who is the 1st Investigating
Officer and recorded the confession of accused in Cr.No.8/2009. PW26, who assisted IO and recorded the confession statement of accused in Cr.No.8/2009.
PW27 who is the 2nd Investigating Officer, who filed charge sheet.
11.PW1/ M.Srinvas has deposed in his evidence that The accused floated one company under the name as Genius Talent.com and he knows the accused through my friend. He was also running Nirantara Amruthavarshini Marketng Pvt.
Ltd. in Hyderabad. The accused used to announce incentives in the form of kitchen and electrical items to his customers who purchase kitchen articles from him. He 8 of 28 CC No.420/2011 has invested Rs. 5 lakhs with the accused on the promise that he would give landed property in the house plot. His friends and relatives also invested a sum of
Rs. 25 lakhs with the accused under the same scheme. After collecting money the accused closed his business in 2007 without intimation to customers. Then the accused did not return our cash. Later, they learnt that the accused was working in office in Himayathnagar. Then the victims including Srinivas and B Srinivas (Lws 2 and 3). They apprehended the accused and handed over to the police and lodged a report under Ex.P1 along LW2 and 3
During his crossexamination, he was having only xerox vouchers to show his payments to the accused and given xerox copies of such vouchers to the police at the time of his examination. He admitted that he invested Rs.5,00,000/ in the company of accused which was running real estate business. Initially he was given shares worth of Rs.5,00,000/ in the company of accused for his investment. He have received back 20% of his investment. There was intention on the part of the accused at the initial stage to cheat him . Since there was no dishonest intention on the part of the accused to cheat and he admitted several others as investors in the company of accused. Accused has returned back part of the investments made by others. The Company ran into financial troubles in the year 2007. Ex.P1 contain signature. Ex.D2 receipt contains my signature and I along with PW PW.3 have received Rs.5,10,000/ from the accused. He knows one Bhul Jay Lakshmi and Renuka.
12. PW2/ Gandam Srinivas has deposed in his evidence that he was working as Area manager in ICICI Prudential Hyderabad. Previously I worked the same organization as Unit Manager. He know the accused. He used to run one company under the name as Genius Talent. Com and Nirantara Amruthavarshini Market
Pvt. Ltd Hyderabad. On one occasion in the year 2007 the accused held a meeting and announced that if one pay certain amount every month for a period of 20 9 of 28 CC No.420/2011 months he will house plot to such installment payer. He also promised to issue patrol scratching card and we have to pay RS.5000/ under such card to the accused and intern the accused will credit amount so that such card will give money to the petrol supplier for 12 months @ Rs. 1,000/ per month , Beleving his words he deposited Rs. 16 lakhs with the accused on several occasions in a span of one month. The accused has closed his business. Then the accused has cut in the form of cheques by deducting 80% in our payment. He paid Rs. 80 lakhs. . The accused has issued cheque for Rs. 16 lakhs on his name but he did not present the cheque as the accused would pay cash of Rs.16 laksh and take back his cheque , but the accused di not pay the amount In the year 2009 we the customers went to the office in the Himayathnagar and took him to PS and haded over to police. Ex.P1 contains his signature.
During his crossexamination, he stated that he has not handed over any document to the police to show that he paid Rs. 80 lakhs to the accused. He has not stated to the police that he has paid Rs.80 lakhs in discharge of such Rs. 80 lakhs and the accused issued cheque for Rs. 16 lakhs have not presented cheque for collection. He has not stated that he has present the cheque for collection on believing the representation of accused that he would pay cash of Rs. 16 lakhs and take back his cheques. He further admitted before the police about the petrol card scheme and the scheme related to the house plots.
13.PW3/P.Srinivas has deposed in his evidence that he was doing private job in Lorry transport. He know the accused and used to do marketing business. He was running Genius Talent. Com and Nirantara Amrutha Varshini. He used to run his office in Jawahar nagar, Ashok Nagar. He used to run business schemes like
Real Estate schemes, Car schemes, Gold schemes. The accused held a customer meet on one occasion in his office and appraised of the business schemes which he 10 of 28 CC No.420/2011 launched and he joined a member in his schemes and paid Rs.10 laakhs and in the year 2007., After taking Rs.10 lakhs accused closed down his business premises and gave cheques for Rs.2 lakhs and those cheques were not realized and later they went to Himayath Nagar and met the accused in the year 2009 and asked for payment. Then they handed over the accused to PS and Ex.P1 contains his signature along with PW_1 & PW2.
During his crossexamination, he stated that accused offered to give monthly return on his investment and he invested in Real Estate scheme. He alongwith PW1 &PW2 apprehended the accrued and handed over to police and lodged the complaint. He admitted that he did not state to the police he has given
Rs.10 lakhs to the accused and has not given any vouchers to the police and no document reduced into writing .
14.PW3/Diwakar has deposed in his evidence that he was doing private job and the accused was introduced by his friend by name Prabhakar Rao. The said
Prabhakar Rao used to work with the accused who was running in the name and style as Genius Talent. Com and Nirantara Amrutha Varshini. He used to run his office in Jawahar nagar, Ashok Nagar. He used to run business schemes like Real
Estate schemes schemes, Gold schemes. The accused disclosed that he was running business scheme in real estate and who ever pays money he will be given gifts in future. Believing the words of accused , he investied Rs. 1,60,000/ in the year 2007. No receipt was issued by the accused. One month or two months , thereafter the accused disappeared. I did not received any amount from the accused. The accused gave him cheque for Rs. 30,000/ and the same was again take by the accused.
During his crossexamination, he stated that he gave Rs. 1,60,000/ to the accused in form of cash of Rs. 20,000/ and Rs. 1,40,000/ through cheques on several occasions in the name of Prabhakar who used to work in Genuius 11 of 28 CC No.420/2011
Talent There is no receipt for Rs. 1,60,000/ .
15.PW5/ Mohd.Ahmed has deposed in his evidence that he used to work private job. The accused used to the investment in business in the name and style as Genius Talent Com and Nirantha Amruthavarshini Com. He was managing director of the said business concern. He invested a sum of Rs 2,08,000/ in the business of accused. The accused promised to give a equivalent of 5 times of my investment in 20 months. The accused gave voucher cheques in his favour for the amount he invested. The accused gave cheque for Rs. 61,000/ and odd drawn on
Gokul Cooperative Urban Bank Limited, Secunderabad branch. When he thought of presenting the cheque, the accused asked him to wait for one month thereafter the accused requested for further time. Later the accused absconded and he searched for him and found in LB nagar, Chintal area. At that time the accused asked them re tum all the vouchers and cheques which were issued by him and promise to pay cash to him. Accordingly he returned cheques and vouchers. The accused did not investment amount. The accused again escaped. In the year 2009 the CCS police arrested the accused.
During his crossexamination, one Chary who is his friend introduced him to the accused. He paid cash in counter of office of accused. He has not paid cash to the accused. After his conversation with the accused in his chamber, he paid the money in the reception,
16. PW6/ Y.B.Maharshi, has deposed in his evidence that he was doing medical private job in medical field. He know the accused through one Chary. The used used to do investment business in the name and style as Genius Talent.Com and Niranithara Amruthavarshini. Com. Private limited in Chikadpally, Hyderabad.
He was manging director of the said business concern. He invested a sum of Rs.
2,75,000/ in one scheme and another Rs. 1,75,000/ in another scheme in the year 2003 or 2004. The accused gave vouchers in respect of payment made by him.
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The accused promised to pay reruns in the form of lands for my investments. The accused did not repay his investments. The accused did not give any land as promised by him. He escaped from the business place. Later the police arrested him. On information, he went to police station in Bsheerbagh where police examined him
During his crossexamination, he stated that his dealings with the company of accused started in the year 2003/2004. The accused business till 2007. The accused absconding from the year 2003 to 2007. he has no vouchers or receipts given by the accused. After arrest of accused the police called him to give statement in the matter.
17.PW7/ Matta Srinivas Rao has deposed in his evidence that he was doing business. He know the accused to run his business the name as Genius Talent.
Com. He used to invest on lands plots in and around Hyderabad. He used to run his office in Ashok Nagar. He came to know the accused through one M Srinivas who used to work as an executive in the accused in the year 2006. When he met the accused in Nalgonda for the first time that he will invest money on lands and generate profit and repay the capital alongwith profit to the investor. He believed his representation and invested 2.5 lakhs and ahs two months thereafter. This investment was made in the year 2006. The remuneration on my capital for every month for the period of 6 or 7 months. Thereafter, accused stopped payments from
January, 2007. He waited till March, 2007. ch, 2007 the accused gave cheque for
Rs. 66,000/ drawn on Gokul bank . Later he sent a message not to present the cheque. Later he absconded. In the year 2009, he read in the newspaper that the accused was caught by the police. Later I received phone call from CCS,
Hyderabad. He went to CCS police station and police recorded his statements and he supplied xerox copy of cheque to the police. During his crossexamination, he stated that in the year 2007 the company of accused closed.
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18.PW8/ G.Krishna Reddy has deposed in his evidence that he ws working as
Hotel Manager in Vaishnavi Lodge, Secunderabad. He know the accused. On 03 012009 the accused stayed in our lodge for 2 days. The accused left the room without vacating the room by living his personal belongings in room No. 104, first floor. We waited for 3 days and later we opened the doors and kept his luggage in the reception. Eight days thereafter the police came to our lodge along with the accused and recovered the bag and other documents of the accused. In our presence the police recovered all the belongings from their reception counter.
During his crossexamination, they have not lodged any police complaint in this regard. The police have not collected occupancy register pertaining to the accused. They maintain a register wherein the details of occupant, the room alloted to him the amount paid by him and they also take the signature accused and issued receipt for the amount received at the time of vacation.
19.PW9/ Madhukar has deposed in his evidence that he know the accused since he used to stay in his house as tenant in SRT 304, Second floor, Ashok
Nagar. He used to pay Rs. 6,000/ per month. He used to run his office for the business concern called "Niranthara Amrutha Varshini Pvt Limited The accused used to extended marketing services to his customer. He used to run a business scheme with some prizes. He has not invested any amount. Later the accused vacated his house by saying that his mother died in the year 2007. Thereafter cu isomers of of accused came to the office of accused and took away the furniture and other articles, since the accused absconded. He learnt that the accused started some business in Dilsuknagar. Later CCS police came to his house along with accused and he identified the accused as my tenant,He handed over original rent agreement to the C examined me.
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During his crossexamination, accused used to pay cash to him and he was not issued any receipt for the rent.
20.PW10/ K.Srinivas has deposed in his evidence that he was doing business in Real Estate in Hyderabad and he knows PW7 since he is from his village. He know the accused. The accused used to do real estate business in the name as
Genius Talent. He used to run his office in RTC X roads, Hyderabad he did not not in the venture of accused. He did not introduce any investor to the accused whether the accused was doing any other business or not.He do not know whether
PW7 invested any amount in the firm of accused. On one occasion the land owner
Venkesham of Chowtuppal (LW23) came to him and informed that his land was ready for sale. He Informed the same to the accused. He did not participate in the further deal between accused and Venkatesham. He did not get any commission in the deal. I introduced another land owner of land in Srisailam road to the accused.
During his cross examination, he do not know whether the accused settle the amount with all the 50 investors who invested money and he was suppressing that fact at the instance of police.
21.PW11/Dayanand has deposed in his evidence that he knows the accused.
One day while he was traveling in RTC bus some people were telling that one
Genius.Com. Multi level marketing has been performing well and giving good returns to the investors. He learnt that the office of the said concern was situated in RTC Cross Road, Ashok Nagar. He visited the office and contacted accused. The accused informed him that if he Invest Rs. 7,50,000/ he will return Rs. 13 lakhs within the span of 6 months. He invested Rs. 7,50,000/. His relatives namely
Lilavathi, Lavanya, Ommanna. Invested money in the said firm. They all invested
Rs. 60 lakhs. The accuses did not give any receipt. Instead, the accused has given 15 of 28 CC No.420/2011 him a land measuring 8 acre and 11 guntas in Velminedu village, Chityala
Mandal, Nalgonda District. Such land was registered in his name for the amount payable to him . Out of such land, accused got sold 5 acres to third parties for a sum of of Rs. 37,50,000/ out of such has given Rs. 20 lakhs to him and he has not paid the remaining of Rs.17,50,000/ . He has sold the remaining land to third parties for Rs. 13 lakh 27 lakhs in the dealing.
During his crossexamination, he stated that no receipts were given for the payment made by him to the company. He did not give any recipts to the police.
He admitted that the company ws closed in the year 2007..
22.PW12/S.Venkatesharulu has deposed in his evidence that he know the accused. He used to do business in Real Estate in the name family members and relatives. They purchased 41.30 acres of land in Pedda P Village, Chityala
Mandal, Nalgonda District for Real Estate purpose. PW10 and introduced the accused to him saying that he will purchase the land for Real Estate purpose. They sold 7 acres, 38 guntas of land to the accused through his wife. The accused purchased 10 acres of land but he purchased only 7.38 guntas. The accused from them for the purpose of marketing. The accused asked him to invest in business, but he did not invest. He suffered no loss in the dealing. No document was written for remaining land.
During his crossexamination, he stated that No documents was written for the dealing between the accused himself and the accused has paid money for the land which he purchased.
23.PW13/ B.Venkataramana has deposed in his evidence that he knows the accused. The accused used to do business in Genius. Com. He came to know the accused through One Srinivas. The said Srinivas took him to the office of accused in RTC Cross reads. The accused. disclosed that if one invest Rs. 50,000/, he get 16 of 28 CC No.420/2011 back Rs 2 lakhs he deposited Re 2,80,000/ with the accused. 10 days thereafter the accused issued cheque for him for Rs. 50,000/ and the said cheque was dishonored. The accused has taken back the cheque as well as receipts and later he did not return their amount. He suffered loss of Rs.2,80,000/ in the deal.
24.PW14/ B.Somaiah has deposed in his evidence that On one occasion one agent of Genius Talent Com visited LW6/J Venkateshwarlu and informed about the business prospects of said company. On one day he went to LW6/ J
Venkateshwarlu he paid Rs. 98.000/ to agent of Genius Talent Com. This happened in the year 2008. After some days himself and LW6/Venkateshwarlu visitedGeniusTalent.Comoffice,Jawahamagar,Chikkadpally.
LW6/Venkateshwarlu inside the office to deposit money. Later
LW6/Venkateshwarlu informed that he deposited Rs. 1,98,000/ in the office
Fenius Talent. Com. Later he informed him that he got return of Rs. 18.000/. LW 6 /Venkateshwarlu is no more LW6/Venkateshwalu informed him that the company was closed
During his crossexamination, he stated that he has not seen the accused.
He was not introduction with the accused. He do not know the company and he has not paid any amount to the company.
25.PW15/ D.Rajendra Prasad has deposed in his evidence that Presently he was working as an officer in Kotak Mahindra Bank. During the year 2009, he worked as officer of ING Vysya Bank, Chikkadpally in this case the police came to him and placed a request to issue statement of account of M/s Niranthara
Amrutha Varshini which was having with their branch as account
N.345011009170 which was closed on 08032010 and he also issued account extract of K Surender Babu vide a/c number 737010089578 which was closed on 05122009. The account of Surender Babu was with Banjara Hills branch. He 17 of 28 CC No.420/2011 has issued the statement of account by down loading the same from bank. Ex. P2 is covering letters count extracts. Ex.P3 is account extract standing in the name s
Niranthara Amrutha Varshini. Ex.P4 is account extract standing in the name of KS of Ex. P3 and Ex. P4 are correct.
26.PW16/ I. Srikrishna has deposed in his evidence that Presently he was working as Branch Head in Axis Bank. During the year 2009, he worked as
Manager of Axis Bank, Somajiguda. In this case the police CCS came to him and placed a request to issue statement of account of Genius Online.net which ws having with their branch as account no 008010200038270 from 20062005 to 31 032009. He issued the statement of account by downloading the same from the bank internet. Ex. P5 is account extract standing in the name of Gemas Othe account is running 330 pages.
27. PW17/ J.Balaiah has deposed in his evidence that he was retired from my service having worked as Chief Executive Officer in Gokul Cooperative Bank from 2005 to 2017 in Secunderabad branch. During his working period one firm by name Genius Real Enclaves has opened an account with their branch vide Alc. No.
216, on 24072007. The accused signed in account opening form as the said concern. There were some transactions in the account. The account become in operative. Therefore we closed the account and later on the request of the police, he issued copy of account extract is question. Ex.P6 is copy of account extract issued by him.
28.PW18/ Ch. Narsimha Chary has deposed that Previously I worked as Sub
Registrar in Kalwakurthy. On 21092010 on the request of police of CCS, WCO
TeamII. Hyderabad he issued attested copies of registered sale deed no 13413/2006, GPA cum Sale agreement Doc. No.2066/2007, Sale deed in
Doc.No.13414/2006, GPA cum sale agreement in Doc.No. 1768/2007, Sale deed in Doc.No.14786/2006, GPA cum sale agreement in Doc.No.2065/2007, GPA cum 18 of 28 CC No.420/2011 sale agreement in Doc. No.2658/2007. C cum sale agreement in Doc.
No.2659/2007, GPA cum sale agreement Doc.No.2660/2007, GPA cum sale agreement in Doc.No.2661/2007, Sale Doc.No. 14787/2006, GPA cum sale agreement in Doc.No.1757/2007. All the documents are marked as Ex P7.
29.PW19/ V.Renuka has deposed in her evidence that Presetly working as Sub
Registrar in Bowenpally, Secunderabad. She worked as incharge SubInspector ,
SubRegistrar Chowtoppal, Nalgonda District from 2004 to 2007. In this case being a regitrar she has registered in thei registers the following sale deeds.
1. Doc No. 7910/2006 Sale deed in favour of K Surendra Babu which is marked as Ex.P8
2. Doc.no. 365/2007 Sale deed in favour of B Ravichander executed by K
Surendra Babu which is marked as Ex.P9.
3. She issued Encumbrances Certificate from 01051995 to 2309201 respect of sales and purchases of Surendra babu and the same is marked as Ex P10 (it contains 10 entries and this document is running 5 page) 30PW20/ V.Venu has deposed that in his evidence that on dt.512009, the police of CCS called himi to PS and Surendra Babu was present In his presence the police revered one CD. one pan Card, Two sell info accused. MO1 is one broke n CD. MO2 is Pan Card no ANJPK0715C. MO3 & MO4 are celll phones. The police prepared panchanama for seizure of the above and he signed as witness.
Ex.P11 is seizure panchanama.
31.PW21/ R.Shekar reddy has deposed that Presently he ws working Inspector of Police in Banswada. Previously worked as SI of police P.S. Haliya, Nalgonda
District from 02072007 to 28022009. On dt.11022009, received complaint referred by Special Judge for Offence under Protection Depositors of Financial
Establishment Act Cum Principal Sessions Judge, Nailgains registered the same as 19 of 28 CC No.420/2011 case in Cr.No.24/2009 for offence Uis Sec.5 AP Protection Depositors of Financial
Establishment Act and Sec.420 and 506 IPC . Ex.P12 is complaint. Ex P13 is FIR.
Later on his transfer he handed over the cas file to Madhusudhan Reddy SI of police.
32. PW22/ P.Madhusudna Reddy has deposed in his evidence that Presently hew was working Inspector of Police in CID, Hyderabad. Previously worked in SI of police P.S. Haliya, Nalgonda District from 27022009 to 15052010 in this case,he took the case file in Cr.No.24/2009 of Haliya P.S., from PW21 and he examined and recorded the statement of LW4/Jellapati Venkateshwarlu, PW13 and PW14 Bodiu omaiah and Bojja Venkataramana. As per the instruction of SP
Nalgonda, vikle Letter 993/D4DCRB/2009 he transferred the CD file to
Commissioner of Police, Hyderabad investigation since similar cases were registered against the same accused in Chilkalguda P.S., and CCS, Hyderabad. Ex
P14 is the attested copy of transfer orders.
33.PW23/ Syed Safuddin has deposed in his evdience that he was retired as
Sub Inspector. He worked as SI of Police in CCS, Hyderabad during the year 2007 to 2012. During my working on 19112009 at 1215 hours as per the endorsement of DCP, DD, Hyderabad he reregistered a case as Cr.No.322/2009 for the offences
U/Sec. 406, 420 of IPC and Sec.5 of AP Protection of Deposit Finance
Establishment Act 1999 and issued FIR. Ex. P15 is FIR issued by him . He handed over the case file to the Inspector, WCOTeamII, Hyderabad.
34.PW24/ S.Ramachandra Reddy has deposed in his evidence that he retired from his service having worked as SI of police. During the year 2012, he worked in
CCS WCO TeamII, Hyderabad. In this case, he examined and recorded the statements of LW4/Jalapathy Venkateshwarlu in Cr.No.322/2009. LW4/ 20 of 28 CC No.420/2011
Venkateshwarlu gave complaint before Halya Police station, Nalgonda district and the same was registered as Cr. No.24/2009 and the same was transferred to CCS
WCO TeamII, Hyderabad as per the directions of the Court and the same was registered as Cr.No.322/2009 by LW4/Venkateshwarlu was examined by police of
Haliya and again he examined and recorded his statement and is no more.
35.PW25/ G.Venu Gopal has deposed in his evidence that Hyderabad,
Previously, worked as inspector of Police, WCO TeamII, CCS Hyderabad. On dt.7 12009, he took over the investigation in Cr.No.8/2009, U/Sec 420, 406 IPC and
Sec.4 of Prize Chits Mney Circulation Act, 1978. On dt.712009, he took up the investigation from LW41/Shivaram Reddy, SI of police and found the investigation is on proper lines. During the investigation, he recorded the statements of witnesses of Pw4, Lw6/Venkateshwariu, LW7/V.Rao, PW6,LW9/Shanta Kumar,
PW5, LW11/Shivaram Krsihan , LW12/Ramakrishna, LW13/M.Mohan,
LW14/B.Bahsakar, Lw15/B. Trinath likewise examined LW28/G.Srinivas Rao have taken K. Surender Babu for Police custody for a period of 8 days 13.01.2009 to 20.01.2009. Throughly interrogated and recorded his detail confessional in the presence of Pw20 and Lw35/G.Vamshi. Basing on the confessional statement, he visited Vaishnavi Lodge, Secunderabad along with panchas and recorded the statement of PW8 and lodged manager and recovered, Xerox copy of agreement between accused and Samudrala Kalpana, Hard copy of Data Business of accused, two CD containing business of accused and copy of memorandum of article of association of Genuis Real Estate Pvt.Ltd. Later, he visited premises of SRT 394,
Jawahar Nagar, Ashok Nagar, Hyderabad, where he examined and recorded the statement of PW9. He also visited the native place of Returu village of Kunnor
Guntur Dist couldn't found any property purchased by him on his name or on his relatives out of misappropriation amount. He further collected bank statement 21 of 28 CC No.420/2011 from LW28/Srinvias Rao Manager, ICICI bank. PW15 & PW17 also collected certified copy of relevant documents from the register company pertaining to
Nirantana Amrutha Varshini Marketing Geniu Enclave Pvt. Ltd., On 11082009 in view of his promotion he handed over Police, Ramchandra Reddy for further investigation. Ex.P16 is Xerox Copy of Rental Agreement duly attested by me and parties to the Co Ex.P17 is Downloaded data from Hard Disc pertaining to the business firm. Transaction. Ex.P18 is Hard Disc from which Ex.P17 was downloaded. Ex.P19 is Rental Agreement between accused and Madhukar. Ex.P20 is Registration Certificate of Company. Ex.P21 is Memorandum of Articles of
Association along with forms. Ex.P22 is Receipt of Vaisnavi Lodge. Ex.P23 is
Memorandum of Articles of Associate pertaining to Genius Real Enclaves
Pvt.ltd., .P24 is Data downloaded from the Hard Disc as in Ex.P18.
36.PW26/ B.Sivarami Reddy, has deposed in his evidence that presently he was working as Inspector of Police, Intelligence department, Hyderabad Previously, he worked as St of Police, CCS, Whitecollar offences, Hyderabad, from 2007 to 2010. On 05012009, he received an FIR in Cr.No.8/2009, U/Sec.420,406 IPC and Sec.4 oll Prize Chits and Money Circulation (Baning) Act, 1978. PWs1 to 3 brought the accused to CCS, Police Station and handed over to the Police and gave complaint. Basing on the complaint the Lw36/Sharif Ahmed Si of Police registered the same as Cr.No.8/2009 am issued FIR. He handed over the case file to me along with accused. He interrogated the accused. The accused has voluntarily confessed about this offence. He secured the presence Pw20 and LW35/G.Vamshi and recorded the confessional statement. He recovered one PAN Card, one CD, and one mobile phone from the possession of accused under cover of ExP11 Panchanama in the presence of PW20 and G. Vamshi. He effected his arrest, issued arrest card and remanded to judicial custody. He examined and recorded the statements of 22 of 28 CC No.420/2011
Pws 1 to PW3. On 07012009, PW25 took up investigation. M.O.1 is broken CD,
M.O.2 is PAN 0.ANJPK 0715 C. M.O.s.3 and 4 are cellphones.
37. PW27/ V.Narasimha reddy has deposed in his evidence that this case
LW36/Md. Shareef Ahmed the SI of Police, CCS, DD, Hyderabad received complaint from PW1 and registered the same as case in Cr.No.8/2009, U/s 406,420 IPC, and Sec.4 of Prize Chits and Money Circulation (Banning) Act. 1978 and issued FIR. Ex P25 is FIR. He can identify his signature in Ex P25. In this case he assumed further investigation from PW26 and examined and recorded the statements of LWs16/Srinivas Rao, LW17/K. Rajashekar, LW18/Ramesh,
LW19/Shyam Sunder, PW7,PW11, PW10 and PW12. He collected the account extract from Axis Bank of Genious Online.Com company. He also collected certified copies of land from The Sub Registrar Choutuppal and Kalvakurthy as an Ex P7 to
10. After completion of investigation I filed charge sheet.
38As seen from the record, it is the case of the Investigating Officer as per charge sheet that the complainant came to Police Station and gave complaint stating that the accused, who established the company on the name Niranthara
Amrutha Varshini Market (P) Ltd., and got registered at Registrar of Firms which was in the premises of SRT 394, Jawahar Nagar, Ashok Nagar, Hyderabad, and on mobilizing the customers by offering incentives of various schemes and therefore he did business for Rs.5,21,30,968/ in the year from 2005 to 2009 and when the victims approached him to return the amount or to use the profit made by him, he absconded. The Investigating officer collected bank statement of M/s. Genius
Online.net having account in Axix Bank, Green Lands, Begumpet branch,
Hyderabad, after investigation, he filed charge sheet for the offences U/sec.420 & 406 of IPC and Sec.4 of Prize Chits & Money Circulation Act, (Banning),1978 and 23 of 28 CC No.420/2011 to prove the same, prosecution need to establish that all the victims cited in the charge sheet entrusted the amount to the accused and he misappropriated the same to attract the Sec.406 of iPC.
39Similarly the accused cheated the victims to part with their amount or the property with dishonest intention and inducement and also that the victims have transferred their amount to the accused and purchased the goods and items as mentioned in their statements.
40To attract the ingredients of sale under Prize Chits & Money
Circulation Act, (Banning),1978.
41On perusal of the entire evidence discussed above and cross examination done by the defence counsel observed that the admission made by all the prosecution witnesses that not a single piece of paper or document filed to show that the victims paid the amount stated by them during the evidence to the alleged accused person.
42. Moreover, none of the prosecution witnesses have filed any bank statement or examined any bank officials to say that they were having bank amounts in the bank as alleged by them during evidence and on alleged date on promise made by the accused victims have given the said amount to the accused and that the accused has cheated them.
43.Prosecution also need to establish the dishonest inducement made by the accused to attract the ingredients of section charged against him. Though the prosecution witnesses stated that the accused by inducing them have taken the amount but complainant himself admitted that the accused repaid the amount given to him and other witnesses, ie, PW2 & PW3. More over, prosecution witnesses deposed that they have not presented the cheque given by the accused 24 of 28 CC No.420/2011 in the bank, then how they came to know that the accused has cheated, unless the cheque is bounced or accused is not having any amount in the bank, such allegation made against the accused seems to be useless. More over, defence taken by the defence counsel and examined the accused as DW1 shows that he is doing business lawfully and also willing to file the documents however he could not succeed getting original documents, as such, the same could not be marked by the defence. Prosecution witnesses has also not filed any photographs or any receipt to show that on inducement made by the accused, victims have purchased certain items as alleged in the evidence to attract the ingredients of Prize Chits &
Money Circulation Act, (Banning),1978.
44.It is the duty of the court to find out whether sale and purchase stated by the prosecution is within the money circulation scheme. But, no such evidence is placed before this court for proving the same nor any bank officials examined given evidence as alleged. Even PW2 stated that the accused has repaid amount given by him and prosecution witness stated that they have not given any voucher or receipt to the police to support their version to say that the accused by giving the voucher has taken amount and given receipt.
45.PW10 who is circumstantial witness turned hostile and did not support the case of the prosecution. Even, PW20 cited as panch witness also turned hostile and did not support the case of the prosecution. The Investigating Officer examined as PW22 admitted during crossexamination that he got no material to book the case against the accused U/Sec. 4 of Prize Chits & Money Circulation Act, (Banning),1978, so the best reasons known to him why he implicated the accused in this case was not explained. The other Investigating Officer/PW23 admitted during crossexamination that he do not know the reasons why other accused were deleted in the charge sheet. Therefore, the Investigating officer are seems 25 of 28 CC No.420/2011 uncertain to the facts of the case and deposed the evidence which is not inspiring the confidence.
46.Even PW25 one of the other Investigating Officer stated that there are no property found on the name of the accused to say that the accused has induced the public and taken property from the money of the public and cheated them for wrongful gain.
47Therefore, in view of the above discussion prosecution not able to prove the case against the accused beyond all reasonable doubt for the charge against the accused, as such, he is entitled for acquittal.
48.In the result, accused is found not guilty for the offences punishable under
Sections 420 & 406 of IPC and Sec. Sec. 4 of Prize Chits & Money Circulation Act, (Banning),1978, with which, they are charged. Accordingly they are acquitted under Section 248 (1) Cr.P.C for the said offence. The bail bonds of the accused shall be in force for a period of six months from today, as pres1cribed U/sec.437
Cr.P.C.
49.MO1 & MO2 shall be destroyed and MO3 & MO4 shall be auctioned and the sales proceeds shall be confiscated to the State after expiry of appeal time.
Dictated to the Stenographer GrII of this court, transcribed and typed by her
corrected and pronounced by me in the open court, on this the 24 th day of April, 2024. sd/
CHIEF METROPOLITAN MAGISTRATE,
HYDERABAD .
Appendix of Evidence
Witnesses Examined
For Prosecution:
PW1: M.Srinivas, Victim PW2: Gandam Srinivas, Victim PW3: P.Srinivas, Victim 26 of 28 CC No.420/2011
PW4: Diwamar, Victim PW5: Mohd Ahmed, Victim PW6: Y.B.Maharshi, Victim PW7: Matta Srinivas Rao, Victim PW8 : G.Krishna Reddy, Manager of Vaishnavi lodge, PW9: Madhukar, Owner of the premises PW10 : K.Srinivas, Circumstantial witness PW11: Dayanand, Victim PW12: S.Venkateshwarulu, Circumstantial witness PW13: B.Venkata Ramana, Circumstantial witness PW14: B.Somaiah, Circumstantial witness PW15: D.Rajendra Prasad, ING Bank Official PW16: I.Sri Kirshna, Axis Bank Official PW17: J.Balaiah, Gokul Coop Bank Official PW18: Ch Narsimha Chary, Sub Registrar PW19: V.Renuka, Sub Registrar PW20: V.Venu, Panch Witness PW21: R.Shekar Reddy, SI, PS Alwal PW22: P.Madhusudhan Reddy, SI, PS Alwal PW23: Syed Sherfuddin, SI, CCS PW24: S.Ramachandra Reddy, SI, CCS PW25: G.Venu Gopal, SI, PS CCS PW26: B.Shivarami Reddy, SI, PS CCS PW27: V.Narsimha Reddy, SI, PS CCS IO
For Defence:
DW1 : K.Surender Babu
Documents Marked
For Prosecution:
Ex.P1 Complaint Ex.P2 Covering letter
Ex.P3 – Account extract of Accused companyNirantara Amrutha Varshini Ex.P4 – Account extract of Accused Ex.P5 Account extract in name of Genius online.net. Ex.P6 Attested copy of extract issued by PW17 Ex.P7 – Attested copies of registered sale deed, GPA, Agreements issued by PW18. Ex.P8 – Sale deed document No.7910 of 2006 in favour of accused Ex.P9 – Sale deed document No.365 of 2007 in favour of B.Ravichandar Ex.P10 – Encumbrance certificate issued by PW19 Ex.P11 – Seizure panchanama Ex.P12 – Complaint in Cr.No.24 of 2009 Ex.P13 FIR Ex.P14 Attested copy of transfer orders Ex.P15 – FIR in Cr No.322 of 2009 Ex.P16 Xerox copy of rental agreement Ex.P17 Downloaded data of business transactions of accused Ex.P18 – Hard disk Ex.P19 – Rental agreement between accused and Madhukar Ex.P20 Registration certificate of Company Ex.P21 Memorandum of articles of association Ex.P22 Receipt of Vaishnavi lodge.
27 of 28 CC No.420/2011
Ex.P23 Memorandum of articles of association pertaining to Genius Real Estate Enclaves Pvt. Limited. Ex.P24 Downloaded data from Hard disk. Ex.P25 FIR in Cr No.08 of 2009.
For Defence: Ex.D1 – Admissible portion of complaint by PW2 Ex.D2 – Xerox copy of receipt
Material Objects Marked:
MO1 – Broken CD MO2 – Pan Card MO3 Cell phone MO4 Cell Phone sd/
CHIEF METROPOLITAN MAGISTRATE,
HYDERABAD.
28 of 28 CC No.420 of 2011