Nafr High Court
Case Details
1 2025:CGHC:34811 NAFR HIGH COURT OF CHHATTISGARH AT BILASPUR WPC No. 3821 of 2025 1 - Preeti Sidar W/o Shri Shashi Kumar Kerketta Aged About 35 Years R/o Chandrashekhar Azad Ward, Ward No.-16, Kumhar Para, Post - Fundurdihari, Tehsil - Ambikapur, District - Surguja (Chhattisgarh), Pin Code – 497001 2 - Vinit Singh S/o Shri Visheshwar Singh Aged About 38 Years R/o Opposite Of New Hanuman Mandir, Rajendra Prasad Ward No.-43, Near Harimangalam Marriage Hall, Darripara, Post - Ambikapur, Tehsil - Ambikapur, District - Surguja (Chhattisgarh), Pin Code – 497001 3 - Anup Kumar Singh S/o Shri Pandit Ram Aged About 38 Years R/o Ward No.-08, Lakrapara, Post -Ambikapur, District - Surguja (Chhattisgarh), Pin Code – 497001 4 - Harish Kumar Parjapati S/o Late Shri Charitraparsad Aged About 46 Years R/o Ward No.-07, School Gali, Near To Chath Talab, Gandhinagar, P.O. -Ambikapur, Tehsil - Ambikapur, District - Surguja (Chhattisgarh), Pin Code – 497001 5 - Mrs. Sona Singh W/o Shri Hariprasad Aged About 39 Years R/o Rawat Residensi, Manendragarh Road, Ambikapur, Post -Ambikapur, Tehsil - Ambikapur, District - Surguja (Chhattisgarh), Pin Code – 497001 6 - Mrs Kalavati Sandilya W/o Shri Dilip Singh Shyam Aged About 38 Years R/o Vill. - Wadrafnagar, Post - Wadrafnagar, Tehsil - Wadrafnagar, District Balrampur-Ramanujganj (Chhattisgarh), 497225 7 - Pramod Kumar Toppo S/o Late Shri Bachchu Ram Aged About 40 Years R/o Vill. - Parvatipur, Post/ Tehsil - Latori, District - Surajpur, (Chhattisgarh), 497001 8 - Rajnath Tirkey S/o Shri Jaynath Tirkey Aged About 54 Years R/o Vill. - Karadana, Post/tehsil - Batauli, District - Surguja (Chhattisgarh), Pin Code - 497101 9 - Jeevan Beck S/o Shri Fulchand Beck Aged About 54 Years R/o Village/ Post - Bachikela, Tehsil - Batauli, District - Surguja (Chhattisgarh), 497101 10 - Chandkeshwar S/o Shri Ramdev Ram Aged About 55 Years R/o Vill. - Kunjnagar Jhamarpara, Post - Jaynagar, Tehsil/ District - Surajpur 2 (Chhattisgarh), Pin Code – 497226 11 - Rameshwar Singh S/o Shri Gajan Singh Aged About 55 Years R/o Village - Kurunva, Post - Dedari, Police Station/ Tehsil - Vishrampur, District - Surajpur, (Chhattisgarh), Pin Code – 497229 12 - Manish Kumar Lakra S/o Shri Sadhu Ram Aged About 35 Years R/o Vill. - Amari, Post - Batauli, Tehsil - Lundra, District - Surguja (Chhattisgarh), Pin Code – 497101 13 - Rampratap Sahu S/o Late Shri Vishvanath Sahu Aged About 57 Years R/o Vill. - Salaka, Post - Mansukh, Tehsil - Baikunthpur, District - Koriya, Chhattisgarh 497335 14 - Puran Lal S/o Shri Satyanarayan Aged About 34 Years R/o Village - Bodar, Post/ Tehsil - Sonahat, District - Koriya, Chhattisgarh 497339 15 - Jagdhari S/o Shri Nadhira Aged About 56 Years R/o Village - Mohanpur, Post - Haldibari, Tehsil - Chirmiri, District - M.C.B., Chhattisgarh, 497451 16 - Bhaiyo Ekka S/o Shri Timthiyus Ekka Aged About 56 Years R/o Ward No.-04, Muktipara, Post - Ambikapur, Tehsil - Ambikapur, District - Surguja (Chhattisgarh), Pin Code – 497001 17 - Super Panna S/o Shri Ramdhani Ram Aged About 49 Years R/o Vill. - Benai, Post - Girhuldih, Tehsil - Sitapur, District - Surguja (Chhattisgarh), 497111 18 - Lalman Singh S/o Shri Tiwari Lal Singh Aged About 35 Years R/o Vill. - Jagarnathpur, Post - Dharampur, Tehsil - Pratappur, District - Surajpur (Chhattisgarh) 497223 19 - Mrs. Neelam Singh W/o Shri Rupnarayan Painkara Aged About 43 Years R/o Vill. - Kosanga, Post - Lakhanpur, Tehsil - Lakhanpur, District - Surguja (Chhattisgarh), Pin Code – 497116 20 - Devnarayan Singh S/o Late Shri Ramprasad Singh Aged About 51 Years R/o Village - Sirkotanga, Post - Lahpatara, Tehsil - Lakhanpur, District - Surguja (Chhattisgarh), Pin Code – 497116 21 - Jwala Parsad Kurre S/o Late Shri Itwari Kurre Aged About 50 Years R/o Village/ Post - Devnagar, Tehsil - Ramanujnagar, District - Surajpur 497333 22 - Mukesh Barwa S/o Shri Tej Kumar Barwa Aged About 36 Years R/o Ward No.-48, Vishunpur, Kanwarpara, Near To Power House, Post - Ambikapur, Tehsil - Ambikapur, District - Surguja (Chhattisgarh), Pin Code – 497001 23 - Huleshwar Singh Painkara S/o Shri Sukhnandan Ram Aged About 40 Years R/o Vill. - Mudgaanv, Post - Dandgaon, Tehsil - Udaypur, District - Surguja (Chhattisgarh), Pin Code – 497116 24 - Siyon Xalxo D/o Shri Suleman Aged About 31 Years R/o Vill. - Kanth- Gajor, Post - Pangsuwa, Tehsil - Pathalgaon, District - Jashpur, Chhattisgarh, 496220 25 - Kaushalya Ekka D/o Late Shri Muneshwar Ekka Aged About 38 Years R/o Vill. - Aama Dafai, Post - Koriya Kaulari, Tehsil - Baikunthpur, District - Koriya, Chhattisgarh, 497559 26 - Kedarnath Ram S/o Late Shri Gariba Ram Aged About 58 Years R/o Vill. - Parri, Post - Turana, Tehsil - Lakhanpur, District - Surguja (Chhattisgarh), Pin Code – 497116 27 - Rambali Singh D/o Late Shri Dalip Ram Aged About 38 Years R/o Village - Rajapur, Post - Jaynagar, Tehsil/ District - Surajpur, Chhattisgarh 497226 3 28 - Vinita Minj D/o Shri Amrit Minj Aged About 32 Years R/o Vill. - Chandragarh, Post - Parsagudhi, Tehsil - Rajpur, District Balrampur- Ramanujganj, Chhattisgarh, 497118 29 - Jyoti Kujur W/o Shri Rajendra Kujur Aged About 53 Years R/o Namanakala, Ambikapur, Near To Power House, Post - Ambikapur, Tehsil - Ambikapur, District - Surguja (Chhattisgarh), Pin Code – 497001 30 - Sangit Kumar Pandav S/o Shri Lal Baran Pandav Aged About 37 Years R/o Vill. - Manpur, Post - Dawana, Tehsil - Bhaiyathan, District - Surajpur, Chhattisgarh, 497235 31 - Devendra Singh Painkra S/o Shri Ramjit Ram Painkara Aged About 38 Years R/o Vill./ Post - Turna, Tehsil - Lakhanpur, District - Surguja (Chhattisgarh), Pin Code – 497116 32 - Krishna Kumar Singh S/o Shri Sahat Ram Aged About 33 Years R/o Vill. - Kusu, Post - Turna, Tehsil - Lakhanpur, District - Surguja (Chhattisgarh), Pin Code – 497116 33 - Saurabh Shrivastav S/o Shri Santosh Kumar Shrivastav Aged About 35 Years R/o Ward No.-05, Godhanpur, Post/ Tehsil - Ambikapur, District - Surguja (Chhattisgarh), Pin Code – 497001 34 - Dilip Painkra S/o Sobhnath Painkra Aged About 37 Years R/o Vill./ Post - Turna, Tehsil - Lakhanpur, District - Surguja (Chhattisgarh), Pin Code – 497116 35 - Sanjay S/o Shri Ram Bichare Aged About 44 Years R/o Subhashnagar, Post - Charcha Colliery, Tehsil - Baikunthpur, District - Korea, Chhattisgarh, 497339 36 - Roshan Prakash Tirkey S/o Shri Shankar Tirkey Aged About 58 Years R/o Village - Okara, Post - Rajpur, Tehsil - Rajpur, District Balrampur- Ramanujganj (Chhattisgarh) 497118 37 - Jaypal Ram S/o Late Shri Ramdas Aged About 27 Years R/o Vill. - Chandi, Post - Turna, Tehsil - Lakhanpur, District - Sarguja, Chhattisgarh, 497116 38 - Virendra Kumar Painkara S/o Late Shri Ramprakash Painkara Aged About 35 Years R/o Vill. - Beldagi, Post - Lakhanpur, Tehsil - Lakhanpur, District - Sarguja, Chhattisgarh, 497116 39 - Krishna Rajware S/o Late Shri Gangaram Rajware Aged About 44 Years R/o Village - Katkalo, Post - Karaji, District - Sarguja, Chhattisgarh, 497001 40 - Sadhana Kujur W/o Shri Manoj Minj Aged About 42 Years R/o Vill. - Boda, Post - Bilaspur, Tehsil - Batauli, District - Sarguja, Chhattisgarh, 497101 41 - Jeewan Lal Kujur S/o Shri Chikwa Kujur Aged About 45 Years R/o Vill. - Boda, Post - Bilaspur, Tehsil - Batauli, District - Sarguja, Chhattisgarh, 497101 42 - Manoj Ekka S/o Shri Elisiyus Ekka Aged About 43 Years R/o Village - Shardapur, Post - Bartikala, Tehsil - Wadrafnagar, District Balrampur- Ramanujganj, Chhattisgarh, 497223 43 - Suchitra Kujur W/o Shri Ram Avatar Bhagat Aged About 35 Years R/o Ward No.-48, Bhagatpara, Vishnupur, Post - Ambikapur, Tehsil - Ambikapur, District - Sarguja, Chhattisgarh, 497001 44 - Awdhesh Singh S/o Vishwanath Singh Aged About 43 Years R/o Village/ Post - Turna, Tehsil - Lakhanpur, District - Sarguja, Chhattisgarh, 497116 45 - Rina Rosh Tigga D/o Fuljens Tigga Aged About 36 Years R/o H.No.- 139, Ward No.-48, Kanya Parisar Road, Near To Power House, 4 Shantinagar, Vishunpur, Ambikapur, Post - Ambikapur, Tehsil - Ambikapur, District - Sarguja, Chhattisgarh, 497001 46 - Anita Tigga D/o Shri Ramdev Tigga Aged About 36 Years R/o H.No.- 174, Chhiropara, Village - Manpur, Post/ Tehsil - Pratappur, District - Surajpur (Chhattisgarh) 47 - Shashi Kumar Kerketta S/o Late Mani Ram Bhagat Aged About 36 Years R/o Aazad Ward No.-16, Ambikapur, Post - Ambikapur, Tehsil - Ambikapur, District - Sarguja, Chhattisgarh, 497001 48 - Rashmi Kispotta D/o Mr. Apolonius Kispotta Aged About 41 Years R/o House No.-N 29 Galaxy Land, Vidhan Sabha Road, District - Raipur, Chhattisgarh, 492005 49 - Vishal Kispotta S/o Mr. Apolonius Kispotta Aged About 35 Years R/o House No.-N 29 Galaxy Land, Vidhan Sabha Road, District - Raipur, Chhattisgarh, 492005 50 - Amit Kumar Ekka S/o Late Telesphore Ekka Aged About 36 Years R/o Flat No.-04, Block-01, 1st Floor, Kachana Ph-2, Raipur, Chhattisgarh 51 - Sandhya Ekka W/o Vishal Kispotta Aged About 35 Years R/o House No.-N 29 Galaxy Land, Vidhan Sabha Road, District - Raipur, Chhattisgarh, 492005 52 - Anima Kiran Toppo D/o Francis Xavier Toppo Aged About 34 Years R/o Vill. - Mariam Toli, Post/ Tehsil - Hazaribagh, Jharkhand – 825301 53 - Sunil Kumar Toppo S/o Late Telesphore Ekka Aged About 36 Years R/o Flat No.-04, Block-01, 1st Floor, Kachana Ph-2, Raipur, Chhattisgarh 492001 ... Petitioner(s) versus 1 - Union Of India Through Secretary, Ministry Of Finance, North Block, New Delhi – 110001 2 - Reserve Bank Of India Through The Governor, Central OfÏce Building, Shahid Bhagat Singh Road, Fort, Mumbai – 400001 3 - Icici Bank Ltd. Having Its Head OfÏce At I.C.I.C.I. Bank Tower, Bandra- Kurla Complex, Mumbai, Maharashtra, 400051, India 4 - Hdfc Bank Ltd. Having Its Head OfÏce At H.D.F.C. Bank House, Senapati Bopat Marg, Lower Parel (West), Mumbai - 400 013 5 - State Bank Of India Having Its Registered OfÏce At State Bank Bhavan, Madame Cama Road, Nariman Point, Mumbai, 400 021 6 - Idbi Bank Ltd. Having Its Registered OfÏce At I.D.B.I. Tower, W.T.C. Complex, Cuffe Parade, Colaba, Mumbai 400005 7 - Bank Of Baroda Having Its Registered OfÏce At Baroda House, Mandvi, Vadodara - 390001, Gujarat, India 8 - Cholamandalam Investment And Finance Co. Ltd. Having Its Registered OfÏce At Chola Crest, C54-55 And Super B-4, Thiru-Vi-Ka Industrial Estate, Guindy, Chennai – 600032 9 - Cholamandalam Investment And Finance Co. Ltd. Having Its Head 5 OfÏce At Chola Crest, C54-55 And Super B-4, Thiru-Vi-Ka Industrial Estate, Guindy, Chennai – 600032 10 - Central Bank Of India Having Its Registered OfÏce At Chandermukhi, Nariman Point, Mumbai – 400021 11 - Indusind Bank Ltd. Having Its Registered OfÏce At 2, Senapati Bopat Marg, Railway Colony, Lower Parel, Mumbai, Maharashtra, 400013 12 - Bandhan Bank Ltd. Having Its Registered OfÏce At Floors 12-14, Adventz Infinity @5, B.N.-5, Sector- V, Salt Lake City, Kolkata - 700 091, West Bengal, India 13 - Paysense Financial Services Having Its Registered OfÏce At 8th Floor, Empresa Building, 2nd Rd, Khar, Ram Krishna Nagar, Khar West, Mumbai, Maharashtra, 400052 14 - Chhattisgarh Rajya Gramin Bank Having Its Head OfÏce At V.I.P. Road, Near Pakhanjore Bhawan, Atal Nagat, Nava Raipur, District - Raipur, Chhattisgarh – 492101 15 - Aditya Birla Capital Limited Having Its Registered OfÏce At Aditya Birla Centre, S.K. Ahire Marg, Worli, Mumbai – 400030 16 - Transunion Cibil Through Its Director, One World Centre, Tower 2a, 19th Floor, Senapati Bapat Marg, Elphinstone Road, Mumbai – 400013 17 - State Of Chhattisgarh Through Its Director, Financial Management And Information System, Room No. S01-03, 1st Floor, Mahanadi Bhawan, Nava Raipur, Atal Nagar, Chhattisgarh 492002 18 - Government Of Chhattisgarh Through Its Chief Secretary, Mahanadi Bhawan, Mantralaya, Naya Raipur – 492002 19 - State Of Chhattisgarh Through Its Director General Of Police, Chhattisgarh Police, Police Headquarters, Sector-19, Naya Raipur, Chhattisgarh – 492002 20 - Spash Advisor Private Limited Through Its Proprietor Manoj Kumar Pradhan, Having Registered OfÏce At OfÏce No. F.F., 1st Floor, D.M. Plaza, Nalghar Chowk, Chhota Para, Raipur, Chhattisgarh – 492005 21 - Spash Advisor Private Limited Through Its Proprietor Manoj Kumar Pradhan, Having Branch OfÏce At Behind Vashundhara City Mall, Near Tulsi Chowk, Gangapur, Ambikapur, Surguja, Chhattisgarh - 497001 ----Respondents 6 (Cause-title taken from Case Information System) For Petitioner For Respondent-UOI For Respondent No. 3 For Respondent No. 7 For Respondent No. 10 For Respondent No. 14 For Respondent-State
Legal Reasoning
: Mr. Anand Kumar Kujur, Advocate along with Dr. Jitendra Kumar Mehta, Advocate : Ms. Shewta Rai, adv on behalf of Mr. R.K. Mishra, DSGI. : Mr. Aishwarya Kumar Dubey, on behalf of Mr. Aman Saxena, Advocate : Mr. Vinod Deshmukh, Advocate : Mr. Anand Shukla, Advocate : Mr. Raj Shengale, Adv, on behalf of Mr. N. Naha Roy, Advocate : Mrs. Poorva Tiwari, P.L. Hon’ble Shri Arvind Kumar Verma Order on Board 22/07/2025 1. The present writ petition has been filed seeking following relief(s);- (i) That, the Petitioners pray that this Hon'ble Court may be pleased to restrain the Respondent Banks (Respondent Nos. 5 to 14) from initiating or continuing any coercive recovery proceedings-including, but not limited to, issuance of legal notices, deployment of recovery agents, adverse reporting to credit bureaus such as CIBIL, freezing of accounts, or any other form of pressure tactics-against the Petitioners in respect of the disputed personal loans, which have been sanctioned in apparent contravention of RBI guidelines, without lawful due diligence, and under coercion or misrepresentation. (ii)That, this Hon'ble Court may be pleased to stay any such recovery processes until a proper inquiry is conducted into the legality and validity of the said loans, and a borrower-wise debt sustainability assessment is undertaken. (iii) That, this Hon'ble Court may be pleased to declare that the acts of Respondent Banks in sanctioning multiple high- value personal loans to the Petitioners within unreasonably short duration-without following the prudential norms governing responsible lending, without assessing the petitioners' debt-to-income capacity, and in several cases based on single OTP authorisations amount to violations of fundamental rights under Articles 14 and 21 of the Constitution of India. (iv)That, this Hon'ble Court may be pleased to direct Respondent No. 2 (Reserve Bank of India) to forthwith initiate 7 a comprehensive audit into the sanctioning procedures and internal practices followed by the Respondent Banks in the cases of all Petitioners, particularly with regard to (i) Sanctions of Multiple loans within a day or the same week, (ii) Cumulative EMI obligations exceeding 100% of net monthly salary; (iii) Violation of the Digital Lending Guidelines 2022; (iv) Collusion with loan facilitators or Direct Selling Agents (DSAs) (v) That this Hon'ble Court may be pleased to declare all such under loan agreements-executed misrepresentation, undue influence, or based on opaque and collusive practices- as null and void ab initio, or alternatively, direct that the portion of loan amounts siphoned off through third-party channels be declared non-recoverable from the Petitioners, and the balance loan amount be subjected restructuring based on actual repayment capacity of each borrower. Such restructuring may include interest waivers, moratorium periods, and reduction of EMI values. to fair (vi) That this Hon'ble Court may be pleased to direct Respondent Nos. 1 and 2 to frame and publish within a time- bound manner: (a) a National Debt Exposure Capping Framework applicable to all individual borrowers across scheduled commercial banks and NBFCs; (b) mandatory integration of borrower salary verification and income-debt analysis within real-time loan sanctioning platforms; (c) a cooling-off period of 30 days between two consecutive personal loans sanctioned to the same and borrower; (d) a real-time inter-lender borrower exposure visibility system linked to CIBIL or FINNET. (vii)That this Hon'ble Court may be pleased to direct the RBI and the Banking Ombudsman to create an exceptional dispensation mechanism for composite complaints, involving multiple banks and system-level failure, so that affected borrowers are not compelled to file separate complaints for each loan against each bank in different foram. (viii) That this Hon'ble Court may be pleased to direct a full- fledged inquiry into the actions of third-party intermediaries and DSAs involved in the instant matter, as well as the internal compliance and credit verification ofÏcers of the Respondent Banks. Upon finding material breach or collusion, this Hon'ble Court may be pleased to direct disciplinary and penal action against the erring individuals 8 and institutions. (ix) That, this Hon'ble Court may be pleased to pass such further or other orders, directions or reliefs as may be just and necessary in the interest of equity, public justice, borrower protection, and constitutional integrity. 2. Learned counsel for the petitioners submits that the present writ petition is filed by a group of borrowers-primarily Scheduled Tribe members, rural residents, and economically vulnerable individuals from the State of Chhattisgarh who have been subjected to a predatory and collusive lending scheme orchestrated by a private intermediary in active connivance with Direct Selling Agents (DSAs) and field-level banking personnel from multiple Scheduled Commercial Banks and NBFCs. 3. Learned counsel for the petitioners further submits that the Petitioners were fraudulently induced into taking multiple high- value personal loans across several banks within an unreasonably short period, often without submitting independent applications or undergoing creditworthiness assessments. In many cases, loans were sanctioned using a single OTP or minimal documentation, and the disbursed amounts were partially diverted to third-party accounts controlled by the intermediary on the pretext of fictitious investment schemes. This has resulted in EMI obligations grossly disproportionate to the Petitioners' monthly incomes-some exceeding 200% of their net salary-rendering repayment impossible from inception. Following inevitable defaults, the Petitioners were subjected to unlawful and coercive recovery practices in direct violation of RBI guidelines and judicial precedents. Recovery agents employed by Respondent Banks engaged in workplace harassment, threats of social humiliation, and other intimidating tactics, despite the loans not being classified as NPAs. These actions have caused grave psychological trauma, professional harm, and in two cases, the suicide of borrowers. 4. Lastly, learned counsel for the petitioners submits that the Petitioners is seeking urgent intervention, as existing regulatory mechanisms-including the RBI Ombudsman-are incapable of 9 addressing systemic and multi-institutional violations. RTI responses received from the Reserve Bank of India confirm significant regulatory gaps, including the absence of real-time credit monitoring systems, lack of lending caps, and no control framework over DSAs, all of which have enabled unchecked over- lending. In these circumstances, the Petitioners pray for appropriate writs, including in the nature of mandamus, restraining coercive recovery, declaring the impugned loans void or liable to restructuring, and directing systemic reforms including the creation of a national borrower exposure framework, mandatory cooling-off periods, and centralized grievance redress mechanisms. Learned counsel for the petitioner contended that Bank-Manger is also involving in this loan scheme and respondent-banks are not receiving the complaint made by the petitioners. 5. Learned counsel appearing for the respondents-bank submits that the petitioners have taken loans from the concerned Banks and the loan amount was deposited in their account and now they are 6. 7. not willing to repay the loan amount. I have heard learned counsel for the parties and perused the documents. Section 9 of Chapter IV procedure for redressal of grievance under the scheme provides that Any customer aggrieved by an act or omission of a Regulated Entity resulting in deficiency in service may file a complaint under the Scheme personally or though an authorized representative as defined under clause 3(1) (c). 8. Section 2(a) of Section 10 Grounds for non-maintainability of a complaint; a complaint under the Scheme shall not lie unless; (a) the complaint had, before making a complaint under the Scheme, made a written complaint to the Regulated Entity concerned. (1) the complaint was rejected wholly or partly by the Regulated Entity, and the complaint is not satisfied with the reply; or the complainant had not received any reply within 30 days after the Regulated Entity received the complaint. (2) the complaint is made to the Ombudsman within one year after the complainant 10 has received the reply from the Regulated Entity to the complaint or, where no reply is received, within one year and 30 days from the date of the complaint. 9. Considering the facts and circumstances of the case, instead of keeping this petition pending, this Court finds it appropriate to dispose of the present writ petition with a direction to the petitioners to file an application/complaint directly before the Banking Ombudsman Reserve Bank of India, Regional OfÏce Raipur within a period 15 days from the date of receipt of copy of this order. In turn concerned Banking Ombudsman is directed to decide the complaint/application within a period of 60 days from the date of application/complaint filed by the petitioners. 10. It is made clear that this Court has not observed anything on the merits of the case. 11. With the aforesaid observations and directions, this petition
Decision
stands disposed of. Sd/- (Arvind Kumar Verma) Judge Jyoti JYOTI JHA Digitally signed by JYOTI JHA