Manne Srinivas Rao v. The State Of Telangana

IN THE HIGH COURT FOR THE STATE OF TELANGANA

AT HYDERABAD THE HONOURABLE SMT. JUSTICE K. SUJANA CRIMINAL PETITION No.2840 of 2026 DATE: 16.03.2026 BETWEEN:

Manne Srinivas Rao and another ..... Petitioners/Accused Nos.6 & 7 And The State of Telangana, through Public Prosecutor, The High Court for the State of Telangana at Hyderabad ..... Respondent

ORDER

This Criminal Petition is filed under Section 482 of Bharatiya Nagarik Suraksha Sanhita, 2023 (for short 'BNSS') for grant of prearrest bail to the petitioners, who are arrayed as accused Nos.6 and 7 in Crime No.266 of 2023 before the Central Crime Station, Hyderabad, registered for the offences punishable under Sections 406, 409, 420 read with 120-B and Section 5 of Telangana Protection of Depositors of Financial Establishments Act - 1999 (TPDFE Act).

2.

The brief facts of the case are that the de facto complainant lodged a report before the police on 16.09.2023 stating that he was carrying on a wholesale dry fruits business and became acquainted with the accused. The accused informed him that they had been running a Fast Moving Consumer Goods (FMCG) business venture since 2017 and were earning huge and quick profits. Believing them, the complainant invested substantial amounts with them on the assurance that he would receive a profit of 2% every ten days, amounting to 6% per month. Trusting the accused, the complainant transferred money to the distributors as instructed, expecting to receive the promised 6% goodwill.

However, at a later stage, he discovered that instead of purchasing goods from the distributors and selling them to customers, the accused were allegedly withdrawing 30% of the stock value in cash from the distributors and diverting the same for their personal use. Subsequently, the complainant also came to know that several other persons had been similarly cheated by the accused. Based on the said report, the police registered a case against the accused for the alleged offences.

3.

Heard Sri L. Ravi Chander, learned Senior Counsel appearing on behalf of Sri S. Lakshmikanth, learned counsel for

the petitioners, and Sri M. Ramachandra Reddy, learned Additional Public Prosecutor appearing on behalf of the respondent-State. 4.

Learned counsel for the petitioners submitted that the petitioners are arrayed as Accused Nos. 6 and 7 and that, even according to the de facto complainant, there is no allegation that any amount was deposited with the petitioners and that the petitioners are innocent and have been falsely implicated in the case. He further submitted that the petitioners have no previous criminal antecedents and that none of the allegations made in the complaint attract the offences alleged against them. The petitioners are ready and willing to cooperate with the investigating officer and that custodial interrogation of the petitioners is not required for the purpose of investigation and that Section 5 of the TPDFE Act is not applicable to them. Therefore, he prayed the Court to grant prearrest bail to the petitioners by allowing this Criminal Petition. 5.

On the other hand, the learned Additional Public Prosecutor opposed the petition by filing a counter affidavit, contending that the case involves a serious financial fraud affecting multiple victims and that recovery of the defrauded amounts is still pending and that the investigation is at a crucial stage. Therefore, prayed the Court to dismiss the criminal petition.

6.

In light of the submissions made by both the learned counsel and upon perusal of the material available on record, it is evident that the petitioners are arrayed as Accused Nos. 6 and 7 and the allegations in the complaint are that several innocent members of the public were induced to invest huge amounts of money. However, there are no specific allegations against the present petitioners and the principal allegations appear to be against Accused Nos. 1 and 2. Considering the facts and circumstances of the case, the nature of the allegations against the petitioners, and the nature of the offences alleged, this Court deems it appropriate to grant pre-arrest bail to the petitioners, subject to the following conditions:

i.

The petitioners shall surrender before the Station House Officer, Central Crime Station, Hyderabad within two weeks from today, and on such surrender, the said Station House Officer shall release them on bail on executing a personal bond for Rs.25,000/- each with two sureties, for the like sum each.

ii.

The petitioners shall abide by the other conditions stipulated in Section 482(2) of Bharatiya Nagarik Suraksha Sanhita, 2023 and co-operate with the Investigating Officer in investigating the case.

iii.

The petitioners shall appear before the concerned Investigating Officer on every

Wednesday between 09:00 a.m, and 05:00 p.m., or till the filing of the charge sheet, whichever is earlier, and thereafter, as and when required.

7.

Accordingly, this Criminal Petition is allowed. Miscellaneous applications, if any pending, shall stand closed.

_______________ K. SUJANA, J Date: 16.03.2026 SS

THE HONOURABLE SMT JUSTICE K. SUJANA CRIMINAL PETITION No.2840 of 2026 Date: 16.03.2026 SS