Telangana High Court
M/S. Indusviva Healthsciences Pvt. Ltd vs The State Of Telangana on 30 April, 2026
IN THE HIGH COURT FOR THE STATE OF TELANGANA
AT HYDERABAD
THE HONOURABLE SRI JUSTICE J.SREENIVAS RAO
CRIMINAL PETITION Nos.16795, 16796 and 16797 of 2025
Date: 30.04.2026
Between:
M/s. Indusviva Healthsciences Private Limited and six others.
...Petitioners in Crl.P. No.16795 of 2025/
Accused Nos.1 to 6 and 8
M/s. Indusviva Healthsciences Private Limited and six others.
...Petitioners in Crl.P. No.16796 of 2025/
Accused Nos.1 to 6 and 8
Abhilash Thomas and four others.
......Petitioners in Crl.P.No.16797 of 2025/
Accused Nos.1, 2, 3, 5 and 13
AND
The State of Telangana and another.
...Respondents
Common Order:
Criminal Petition No.16795 of 2025 has been filed by the petitioners/accused Nos.1 to 6 and 8 seeking to quash the proceedings in C.C. No.5 of 2021 on the file of the I Additional Senior Civil Judge-cum-I Additional Chief Judicial Magistrate, Ranga Reddy District at L.B.Nagar, for the offences punishable under Sections 406, 420 and 120 B of the Indian Penal Code, 1860 (for short 'the IPC') and Sections 4 to 6 r/w 3 and 2(C) of the Prize Chits and Money Circulation Schemes (Banning) Act 1978.
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2. Criminal Petition No.16796 of 2025 has been filed by the petitioners/accused Nos.1 to 6 and 8 seeking to quash the proceedings in C.C. No.7 of 2023 on the file of the I Additional Senior Civil Judge-cum-I Additional Chief Judicial Magistrate, Ranga Reddy District at L.B.Nagar, for the offences punishable under Sections 406, 420 and 120 B of the Indian Penal Code, 1860 (for short 'the IPC') and Sections 4 to 6 r/w 3 and 2(C) of the Prize Chits and Money Circulation Schemes (Banning) Act 1978.
3. Criminal Petition No.16797 of 2025 has been filed by the petitioners/accused Nos.1, 2, 3, 5 and 13 seeking to quash the proceedings in C.C. No.6 of 2023 on the file of the I Additional Senior Civil Judge-cum-I Additional Chief Judicial Magistrate, Ranga Reddy District at L.B.Nagar, for the offences punishable under Sections 406 and 420 of the Indian Penal Code, 1860 (for short 'the IPC') and Sections 3 to 5 and 6 r/w 2(C) of the Prize Chits and Money Circulation Schemes (Banning) Act 1978.
4. Heard Mr. T.Niranjan Reddy, learned Senior Counsel, representing Mr.P.Vinayaka Krishna Vardhan, learned counsel for the petitioners in all the three criminal petitions, Mr.J.Harish, learned counsel for respondent No.2 in Crl.P.No.16795 of 2025, Mr.Ankit Kapoor, learned counsel for respondent No.2 in Crl.P.No.16796 of 2025, Mr.P.Srihari, learned counsel for respondent No.2 in Crl.P.No.16797 of 2025, and Mr. Jithender Rao ::3::
Veeramalla, learned Additional Public Prosecutor, appearing on behalf of respondent No.1 in all the three criminal petitions.
5. Learned Senior Counsel appearing for the petitioners as well as the learned counsel for respondent No.2 in all the three criminal petitions submitted that both the parties have entered into Memorandum of Understanding (MOU) on 23.12.2025. Pursuant to the said MOU, respondent No.2/de-facto complainant does not want to prosecute the matter and he is not having any objection to quash the proceedings against the petitioners in all the three criminal petitions. Learned Senior Counsel appearing for the petitioner placed the copy of the statement stating that M/s.Indusviva Healthsciences Private Limited/accused No.1 in C.C. No.5 of 2021 and C.C. No.7 of 2023 (hereinafter referred to as 'the Company'), settled the amount to L.Ws.1 to 6, 8 to 12 and 14 to 25 in Crl.P.No.16795 of 2025, L.Ws.1 to 7 in Crl.P.No.16796 of 2025 and L.Ws.1 to 6 in Crl.P.No.16797 of 2025 and the said witnesses have given their affidavits stating that they are not having any objection to quash the proceedings. Those sworn affidavits were also filed along with the present criminal petition.
6. He further submitted that due to non-availability of LW.7 Garlapati Srinivas Reddy and LW.13 Lingaboina Ramesh, in C.C. No.5 of 2021, the Company could not settle the amount to them and whenever they are available, the Company will settle the issue with ::4::
them. By virtue of compromise entered by the de-facto complainant, sworn affidavits filed by the witnesses, continuation of the proceedings against the petitioners is clear abuse of the process of law. He further submitted that even in respect of financial offences or economic offences, the parties are entitled to compromise and seek quashing of the proceedings.
7. In support of his contention, he relied upon the following decisions;
i) K.Bharthi Devi and another v. State of Telangana and another 1;
ii) Gian Singh v. State of Punjab and another 2; and
iii) Gold Quest International Private Limited v. State of Tamil Nadu and others 3.
8. Learned Additional Public Prosecutor basing upon the written instructions furnished by the Investigating Officer/Assistant Commissioner of Police, Gachibowli (EOW) Police Station, Cyberabad, dated 24.12.2025 submitted that there are 2,46,687 victims and basing upon the MOU entered into between the petitioners and the de-facto complainant and sworn affidavits of the witnesses in the present criminal petitions, the petitioners are not 1 (2024) 10 SCC 384 2 (2012) SCC 303 3 (2014) 15 SCC 235 ::5::
entitled to seek for quashing the proceedings. However, none of the victims are come forward so far.
9. Learned Senior Counsel appearing for the petitioners disputed the submissions made by the learned Additional Public Prosecutor and submitted that no other victims are there, except the de-facto complainants and the witnesses, who were examined by the Investigating officers in all these three cases.
10. This Court considered the submissions made by the respective parties and perused the records. However, this Court is not inclined to decide whether there are 2,46,687 victims or any other victims except the de-facto complainant and the witnesses, who were examined in these three cases, as contended by the respective parties.
11. Taking into consideration the peculiar facts and circumstances, MOU entered into between the petitioners and respondent No.2/de-facto complainant, the sworn affidavits filed by the witnesses, as well as the submissions made by the respective parties, this Court, without expressing any view on the merits of the case, is inclined to quash the proceedings against the petitioners/accused Nos.1 to 6 and 8 in C.C. No.5 of 2021, petitioners/accused Nos.1 to 6 and 8 in C.C. No.7 of 2023 and the petitioners/accused Nos.1, 2, 3, 5 and 13 in C.C. No.6 of 2023, on ::6::
the file of the I Additional Senior Civil Judge-cum-I Additional Chief Judicial Magistrate, Ranga Reddy District at L.B.Nagar.
12. Accordingly, these criminal petitions are allowed. It is made clear that this order will not preclude any of the victims to agitate their rights in accordance with law.
Miscellaneous applications, pending if any, shall stand closed.
___________________ J.SREENIVAS RAO, J Date: 30.04.2026 pgp