APHC010234362024 IN THE HIGH COURT OF ANDHRA PRADESH THURSDAY, THE 23 PRESENT:THE HONOURABLE SRI JUSTICE RAVI CHEEMALAPATI WRIT PETITION NO: 11867/2024 Between: 1. YAMANI RAVINDRA BABU, S/O Y. SAMBASIVA RAO AGED ABOUT 41 YEARS, R/O. D.NO.2 VILLAGE, PHIRANGIPURAM MANDAL, GUNTUR DISTRICT, A.P., AADHAAR NO.5622 5295 5923. 2. EDARA HARI BABU,, S/O. E. VENKATA SUBBAIAH, AGED ABOUT 59 YEARS, R/O.D.NO.5 VILLAGE, PHIRANGIPURAM MANDAL, GUNTUR DISTRICT, A.P., 1. THE UNION OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF EXPENDITURE, ROOM NO. 76, NEW DELHI SECRETARY. 2. THE UNION OF INDIA, MINISTRY OF HOME AFFAIRS NORTH BLOCK, NEW DELHI 3. THE DIRECTORATE OF ENFORCEMENT, PRAVARTAN BHAWAN, APJ ABDUL KALAM ROAD NEW DELHI DIRECTOR. 4. THE JOINT DIRECTOR, DIRECT BASHEER BAGH, HYDERABAD, TELANGANA 5. THE DEPUTY DIRECTOR, , DIRECTORATE OF ENFORCEMENT, 215 MIG, AP POLLUTION CONTROL BOARD ROAD, VUDA LAYOUT, MADHURAVADA, VISAKHAPATNAM, ANDHRA PRADESH - 530 018. 6. THE STATE OF ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY HOME DEPARTMENT, A.P. SECRETARIAT, VELAGAPUDI, AMARAVATHI, GUNTUR DISTRICT. W.P.No.11867 of 2024 1 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) THURSDAY, THE 23rd DAY OF JULY 2026 THE HONOURABLE SRI JUSTICE RAVI CHEEMALAPATI WRIT PETITION NO: 11867/2024 BABU, S/O Y. SAMBASIVA RAO AGED ABOUT 41 YEARS, R/O. D.NO.2-80/1, PADAMATA BAZAR, PONUGUPADU VILLAGE, PHIRANGIPURAM MANDAL, GUNTUR DISTRICT, A.P., AADHAAR NO.5622 5295 5923. EDARA HARI BABU,, S/O. E. VENKATA SUBBAIAH, AGED ABOUT R/O.D.NO.5-29/1, NEAR SHIVALAYAM, PONUGUPADU VILLAGE, PHIRANGIPURAM MANDAL, GUNTUR DISTRICT, A.P., ...PETITIONER(S) AND THE UNION OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF EXPENDITURE, ROOM NO. 76, NEW DELHI - 110001, REP. BY ITS THE UNION OF INDIA, MINISTRY OF HOME AFFAIRS NORTH BLOCK, NEW DELHI - 110001, REP. BY ITS SECRETARY. THE DIRECTORATE OF ENFORCEMENT, PRAVARTAN BHAWAN, APJ ABDUL KALAM ROAD NEW DELHI -110 011, REP. BY ITS THE JOINT DIRECTOR, DIRECTORATE OF ENFORCEMENT, BASHEER BAGH, HYDERABAD, TELANGANA - 500004. THE DEPUTY DIRECTOR, , DIRECTORATE OF ENFORCEMENT, 215 MIG, AP POLLUTION CONTROL BOARD ROAD, VUDA LAYOUT, MADHURAVADA, VISAKHAPATNAM, ANDHRA 530 018. ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY HOME DEPARTMENT, A.P. SECRETARIAT, VELAGAPUDI, AMARAVATHI, GUNTUR DISTRICT. RC,J W.P.No.11867 of 2024 IN THE HIGH COURT OF ANDHRA PRADESH [3332] THE HONOURABLE SRI JUSTICE RAVI CHEEMALAPATI BABU, S/O Y. SAMBASIVA RAO AGED ABOUT 80/1, PADAMATA BAZAR, PONUGUPADU VILLAGE, PHIRANGIPURAM MANDAL, GUNTUR DISTRICT, A.P., EDARA HARI BABU,, S/O. E. VENKATA SUBBAIAH, AGED ABOUT 29/1, NEAR SHIVALAYAM, PONUGUPADU VILLAGE, PHIRANGIPURAM MANDAL, GUNTUR DISTRICT, A.P., ...PETITIONER(S) THE UNION OF INDIA, MINISTRY OF FINANCE, DEPARTMENT OF 110001, REP. BY ITS THE UNION OF INDIA, MINISTRY OF HOME AFFAIRS NORTH THE DIRECTORATE OF ENFORCEMENT, PRAVARTAN BHAWAN, 110 011, REP. BY ITS ORATE OF ENFORCEMENT, THE DEPUTY DIRECTOR, , DIRECTORATE OF ENFORCEMENT, 215 MIG, AP POLLUTION CONTROL BOARD ROAD, VUDA LAYOUT, MADHURAVADA, VISAKHAPATNAM, ANDHRA ANDHRA PRADESH, REP. BY ITS PRINCIPAL SECRETARY HOME DEPARTMENT, A.P. SECRETARIAT, RC,J W.P.No.11867 of 2024 2 7. THE DIRECTOR GENERAL OF POLICE, AP DGP HEAD QUARTERS, AT MANGALAGIRI, GUNTUR DISTRICT, ANDHRA PRADESH - 522 502. 8. THE STATION HOUSE OFFICER, PHIRANGIPURAM POLICE STATION, PHIRANGIPURAM MANDAL, GUNTUR DISTRICT. 9. NIDAMANURI BHIMESWARA RAO, R/O. PONUGUPADU VILLAGE, PHIRANGIPURAM MANDAL, GUNTUR DISTRICT, A.P. 10. NIDAMANURI SUBBAYAMMA, W/O. N. BHIMESHWARA RAO, R/O. PONUGUPADU VILLAGE, PHIRANGIPURAM MANDAL, GUNTUR DISTRICT, A.P. 11. NIDAMANURI SIVA PRASAD, S/O. N. BHIMESWARA RAO, R/O. PONUGUPADU VILLAGE, PHIRANGIPURAM MANDAL, GUNTUR DISTRICT, A.P. 12. NIDAMANURI PUSHPA ALEKHYA, W/O. N. SIVA PRASAD, PONUGUPADU VILLAGE, PHIRANGIPURAM MANDAL, GUNTUR DISTRICT, A.P. . ...RESPONDENT(S): Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an order, writ or direction, more particularly one in the nature of Writ of Mandamus declaring the action of the respondents 3 to 5 in not registering the case (ECIR) against the respondents 9 to 12 herein pursuant to the representations of the petitioners and other villagers dated 11.08.2023 and 02.05.2024 and investigate into the fraud committed by respondents 9 to 12, as arbitrary, illegal, unjust, contrary to law, favoritism shown by the authorities, failure to exercise power, violation of principles of natural justice and contrary to the provisions of the Prevention of Money Laundering Act, against the fundamental rights guaranteed under Articles 14 and 21 of the Constitution of India and consequently direct the respondents 3 to 5 or any other Central Investigating Agency to register a case(ECIR) under PML Act against financial fraud committed by the respondents 9 to 12 and further direct them to conduct thorough investigation into the said fraud and other similar frauds/scams in the State of Andhra Pradesh and take appropriate legal action against the respondents 9 to 12 herein and other persons involved in the said fraud/scam, recover the amounts collected by the respondents 9 to 11 and other fraudsters from the petitioners and other depositors/villagers and return the same to the respective depositors. RC,J W.P.No.11867 of 2024 3 IA NO: 1 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the respondents 6 and 7 herein to submit a report regarding the similar financial frauds/scams committed in the State of Andhra Pradesh, along with the details of the actions taken on such frauds, pending disposal of the above Writ Petition. IA NO: 2 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the respondents 3 to 5 to forthwith register a case against the respondents 9 to 12, conduct thorough investigation on the representations/complaints dated 11.08.2023 and 02.05.2024 submitted by petitioners and other villagers, pending disposal of the above Writ Petition. IA NO: 3 OF 2024 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct to call for records pertaining to the case in FIR No.283 of 2021 dated 04.12.2021 on the file of the 8*^ respondent, as well as the records relating to the investigation conducted therein, further direct the respondents 3 to 5 to arrest the accused persons involved in the said case including the respondents 9 to 12 herein, pending disposal of the above Writ Petition. Counsel for the Petitioner(S): 1. CHAMARTHY CHAKRAVARTHI SURYA DEEPAK Counsel for the Respondent(S): 1. GP FOR HOME (AP) 2. JUPUDI V K YAGNADUTT(CENTRAL GOVERNMENT COUNSEL) 3. JOSYULA BHASKARA RAO ( SC FOR E D ) RC,J W.P.No.11867 of 2024 4 ORDER This writ petition is filed questioning the inaction of respondent nos. 3 to 5 in registering case and investigating into the fraud committed by respondent nos. 9 to 12 despite submissions of representations dated 11.08.2023 and 02.05.2024 by the villagers. 2.Heard Sri Katta Sambasiva Rao, learned counsel for petitioners, and Sri Josyula Bhaskara Rao, learned Standing Counsel for Directorate of Enforcement. 3.Sri Katta Sambasiva Rao, learned counsel, while reiterating the contents of the writ affidavit would contend that the petitioners submitted representations to the Directorate of Enforcement regarding the misdeeds and fraud committed by respondent nos.9 to 11 to the tune of Rs.13 crores in defrauding the subscribers of the private unauthorized chits run by them, which would be nearly thousands of crores in the entire district in relation to similar crimes by others, the authorities though the offence committed by respondent nos.9 to 11 falls under the category ‘scheduled offences’ as per Prevention of Money Laundering Act (PMLA), 2002. He would further submit that it would suffice for the time being if a direction is given to respondent nos. 3 and 4 to consider and dispose of the representations submitted by the petitioners. RC,J W.P.No.11867 of 2024 5 4. On the other hand, Sri Josyula Bhaskara Rao, learned Standing Counsel for Directorate of Enforcement, submitted that the allegations made against the unofficial respondent nos. 9 to 11 do not constitute any predicate offence under PML Act, 2002 and even if the allegations are taken to be true on their face value, the offences punishable under the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 or the provisions of the Andhra Pradesh Protection of Depositors of Financial Establishments Act, 1999 would only attract. He would further contend that the authorities would dispose of the representations submitted by the petitioners within the time fixed by this Court. 5. Perused the material available on record and considered the submissions made by learned counsel for the parties. 6. The restricted relief of consideration of representations being innocuous and as the authorities have expressed their intention to pass orders on the representations, this Court, without going into the merits of the matter, inclined to dispose of this Writ Petition giving suitable directions to the authorities. 7. Accordingly, the writ petition is disposed of, directing respondent nos.3 and 4 to consider and dispose of the representations submitted by the petitioners dated 11.08.2023 and 02.05.2024 and if found the allegations RC,J W.P.No.11867 of 2024 6 made therein would attract the predicated offence under PMLA, 2002, take consequential action and if not they shall pass reasoned order, as expeditiously as possible. There shall be no order as to costs. Pending miscellaneous petitions, if any, shall stand closed. ___________________________ JUSTICE RAVI CHEEMALAPATI 23rd July, 2026. RR