Dgtly Infotech (Opc) PVT LTD vs. The State Of Telangana

Facts

The petitioners, DGTLY INFOTECH (OPC) PVT LTD and its director Mr. Mujahid Khan, filed a writ petition seeking to quash FIR No. 969 of 2021 registered under Sections 3 and 4 of the Telangana State Gaming Act, 1974, and to declare the action of the respondents in not de-freezing their bank and payment gateway accounts as illegal. The petitioners also sought a direction to de-freeze these accounts to enable them to pay their statutory dues, including GST of ₹29,45,052.31 and Income Tax of ₹28,79,096. The FIR was registered on May 17, 2021, at Cybercrime PS, Hyderabad. The petitioners had made a representation on May 27, 2021, for the de-freezing of accounts.

Held

The Court noted the submission by the respondents that a final report had been filed in FIR No. 969 of 2021, leading to C.C. No. 4384 of 2024. The petitioners were found guilty in that case and paid a fine of ₹3,000 on August 9, 2024. In light of this development, the Court found that the cause of action for the present writ petition no longer survived for adjudication. Therefore, the writ petition was closed. The Court made no order as to costs. Any pending miscellaneous applications were also ordered to stand closed.

Key Issues

1. Whether the FIR No. 969 of 2021, registered under Sections 3 and 4 of the Telangana State Gaming Act, 1974, is liable to be quashed? 2. Whether the action of the respondents in not de-freezing the petitioners' bank and payment gateway accounts, pursuant to their representation dated May 27, 2021, is illegal and unconstitutional? 3. Whether the petitioners are entitled to a direction to de-freeze their accounts to enable payment of statutory dues? Petitioner's Arguments: The petitioners sought to quash the FIR and have their accounts de-frozen to pay statutory dues, including GST and Income Tax. They argued that the continued freezing of accounts was illegal and unconstitutional, preventing them from meeting their financial obligations. Respondents' Arguments: The respondents, represented by the learned Assistant Government Pleader for Home, submitted that during the pendency of the writ petition, the Investigating Officer filed a final report before the learned XII Additional Metropolitan Magistrate, Nampally, Hyderabad. The Court took cognizance, numbered the case as C.C. No. 4384 of 2024, found the petitioners guilty, and sentenced them to pay a fine of ₹3,000, which was paid on August 9, 2024.