- 1 - HC-KAR NC: 2025:KHC:34726 CRL.P No. 2837 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 3RD DAY OF SEPTEMBER, 2025 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM CRIMINAL PETITION NO. 2837 OF 2025 BETWEEN: SRI. MANJUNATHA K.K SON OF KRISHNEGOWDA AGED ABOUT 48 YEARS RESIDING AT KOTE VINAYAKANAGAR, ARKALGUD, HASSAN DISTRICT - 573 201, …PETITIONER (BY SRI. NINGARAJA M.N, ADVOCATE) AND: 1. THE STATE OF KARNATAKA BY ARKALGUD POLICE STATION HASSAN DISTRICT, REPRESENTED BY SPP HIGH COURT OF KARNATAKA BANGALORE - 560 001. 2. SRI. KHALID AHMED SON OF MOHAMMED ISMAIL AGED ABOUT 54 YEARS WORKING AT CO-OPERATIVE SOCIETY SAKALESHPUR TALUK HASSAN DISTRICT - 573 201. …RESPONDENTS (BY SRI. RAHUL RAI K, HCGP FOR R1; VIDE ORDER DATED 18.08.2025, NOTICE TO R2 IS DEFERRED) Digitally signed by SHARADAVANI B Location: High Court of Karnataka - 2 - HC-KAR NC: 2025:KHC:34726 CRL.P No. 2837 of 2025 THIS CRL.P IS FILED U/S 482 OF CR.PC (FILED U/S 528 BNNS) PRAYING TO QUASH THE CRIME IN FIR NO. 16/2025 REGISTERED BY THE RESPONDENT -1 ARAKALAGUD POLICE ON 23.01.2025 FOR THE ALLEGED O/U/S 318 OF BNS AND SECTION 3, 4 OF KARNATAKA PROHIBITION OF CHARGING EXORBITANT INTEREST ACT 2004, PENDING ON THE FILE OF THE HONBLE CIVIL JUDGE AND JMFC AT ARAKALAGUD THE PETITIONER/ACCUSED. THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER This petition is filed by the accused seeking quashing of the proceedings pending in crime No.16/2025 registered by Arakalagud police/respondent No.1 for the offences punishable under section 318 of BNS, 2023 and under sections 3 and 4 of the Karnataka Prohibition of Charging Exorbitant Interest Act, 2004 (for short, 'Act'). 2. The case of the prosecution, as reflected in the complaint, is that pursuant to the directions issued by the Deputy Director of Co-operative Societies, the defacto complainant along with his staff visited the residential premises of the accused for the purpose of inspection. - 3 - HC-KAR NC: 2025:KHC:34726 CRL.P No. 2837 of 2025 During the said visit, it was allegedly discovered that the accused was lending money at exorbitant and usurious rates of interest, in contravention of law. It is further alleged that the accused had obtained cheques from borrowers in an illegal manner and that the said cheques were being misused by him. The complaint also records that during the course of verification and inspection, certain incriminating documents were recovered from the house of the accused, which ultimately formed the basis for registration of a criminal case against him for the offences punishable under Section 420 of the Indian Penal Code and Sections 3 and 4 of the relevant enactment. 3. Learned counsel appearing for the petitioner strenuously contended before this Court that the complaint is false, frivolous, and motivated. It was argued that the allegations do not, on the face of it, attract the penal provisions under which the crime is registered. Therefore, it was urged that the proceedings, if allowed to continue, - 4 - HC-KAR NC: 2025:KHC:34726 CRL.P No. 2837 of 2025 would amount to an abuse of process of law and hence, the same are liable to be quashed at the threshold. 4. Per contra, the learned High Court Government Pleader opposed the petition and justified the registration of the case. He submitted that the complaint discloses cognizable offences and that sufficient material has already been gathered to warrant further investigation against the petitioner. He contended that the matter requires to be probed into in detail and that at this stage, when investigation is still underway, this Court ought not to interdict or stifle the process of law. It was further argued that the allegations, if found true, indicate serious economic exploitation of the public, and therefore, the investigation must be permitted to proceed unhindered. 5. I have carefully considered the rival submissions made by the learned counsel for the petitioner as well as the learned HCGP. I have also meticulously perused the complaint, the order of the learned Magistrate while - 5 - HC-KAR NC: 2025:KHC:34726 CRL.P No. 2837 of 2025 granting bail to the petitioner, and the other records made available. 6. On such examination, what clearly emerges is that the complaint does not stand in isolation. The material on record reveals that as many as 35 members of the public have already approached the jurisdictional police with allegations that the petitioner has been charging exorbitant and unreasonable rates of interest on the loans advanced by him. The order of the learned Magistrate also refers to the recovery of certain documents from the possession of the petitioner during the inspection conducted by the complainant, who is a public authority acting under statutory directions. These circumstances prima facie demonstrate the seriousness of the allegations. In such a background, this Court finds that the contention of the petitioner that the complaint is false cannot be accepted at this stage. The issues raised by the petitioner are all matters that are required to be thoroughly investigated. Interference by this Court, at a - 6 - HC-KAR NC: 2025:KHC:34726 CRL.P No. 2837 of 2025 stage when the investigation is yet to be completed, would not only be premature but also detrimental to the larger public interest and society at large. 7. In view of the foregoing discussion, this Court is of the considered opinion that no case is made out for exercise of the inherent jurisdiction to quash the proceedings at this stage. Accordingly, without expressing any opinion on the merits of the case, this Court holds that the investigation must be permitted to proceed and be concluded in accordance with law. 8. For the reasons aforesaid, the Criminal Petition stands dismissed. Any pending interlocutory applications do not survive for consideration and are accordingly disposed of. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE HDK List No.: 1 Sl No.: 11 CT: BHK