Strictly Comply With RBI Guidelines on Loan Recovery: Telangana HC

Hyderabad: Justice Nagesh Bheemapaka of the Telangana High Court directed banks and financial institutions to strictly comply with the Reserve Bank of India’s (RBI) guidelines while engaging recovery agents and to refrain from using coercive or unlawful measures against borrowers. The judge was dealing with a writ petition filed by Inturi Madhavi, a borrower who alleged arbitrary and illegal recovery actions by certain financial institutions. The petitioner accused Axis Bank, HDFC Bank and others of attempting to recover amounts through intimidation, harassment, humiliation and violation of privacy, all without following due process of law. It was alleged that recovery agents resorted to persistent and anonymous calls, threatening messages and even physical visits to the petitioner’s premises, thereby infringing upon the fundamental rights guaranteed under the Constitution of India. The petitioner also sought action against the RBI, the regulatory authority, for failing to enforce its circular of August 2022, which lays down the framework for fair practices in loan recovery. The judge directed the respondent banks and their agents to “scrupulously follow” the RBI circular and the Supreme Court’s rulings, which prohibit the use of force, intimidation, or harassment in loan recovery proceedings.

HC rejects bail in drugs case

Justice K. Sujana of the Telangana High Court refused to grant bail to an accused alleged of possessing commercial quantities of ecstasy and cannabis. The judge was hearing a criminal petition filed by Malela Vinod Kumar. During a raid conducted on June 20, police seized 22.1 grams of ecstasy and 6.60 grams of cannabis were found in the possession of two accused. The accused were arrested, and a case was registered under the NDPS Act. The petitioner contended that the allegations against him were false, that the search and panchanama were conducted in violation of the NDPS Act. The petitioner also contended that he was willing to cooperate with the investigation and abide by any conditions imposed by the Court. The judge referred to Section 37 of the NDPS Act, which makes offences involving commercial quantities non-bailable unless the Court is satisfied that the accused is not guilty and unlikely to commit further offences. The judge observed that these conditions were not met and dismissed the criminal petition.

HRC’s power to order return of certificates under scrutiny

A division bench of the Telangana High Court will continue to hear a writ plea challenging the order of the Telangana Human Rights Commission (SHRC) directing the release of the original certificates of students despite non-payment of tuition fees from the academic years 2012–2025. The panel comprising Chief Justice Aparesh Kumar Singh and Justice G.M. Moinuddin is hearing a writ plea filed by Annamacharya Educational Trust. The petitioner contended that a group of students approached the SHRC alleging that their certificates were withheld on the grounds of outstanding dues. Acting on the complaint, the SHRC issued notice to the chairman of the trust and subsequently directed the release of the certificates. Counsel for the petitioner contended that the complaint before the SHRC did not fall within the purview of the Protection of Human Rights Act or the 1994 Regulations, which specifically exclude ordinary contractual or financial disputes from its jurisdiction. The petitioner would further argue that the impugned directions amount to an overreach of authority.