The High Court · 2025

3. The Office of the Ombudsman, Represented by its authorized officer, Reserve Bank of lndia, Having its office at Main Building, Shahid Bhagat Singh Road l\/umbai 400001. Rajbhavan Road, Somaliguda, Hyderabad - 500082. ...RESpoNDENrs Petition under Article 226 of lhe Constitutron of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue any order, direction or Writ, more particularly one in the nalure of Writ of [\4andamus declaring the proceedings initiated for declaration of wilfull defaulter against the Petitioners vrde order dt. 26.1'1 .2021 passed by the identification committee and the order dt. 20.07 .2022 passed by the Review Committee, whereby the Petitioners were declared as wilfull defaulter and consequent failure of Respondent No. 2 and 3 in correcting the same by taking appropriate action against Respondent No.4 bank as being illegal, arbitrary, u ncon stitutiona I and contrary to the terms of RBI Circular 2015-16/100/DBR No ClD.BC.22l2O.1600312015-16 dated 01 .O7.2015 and against the law laid down by the Honble Supreme Court in the case of State Bank of lndia Vs M/s Jah Developers Private Limited and others reported in 2019 (6) SCC 787 and in violation of Article 14, 19 (1) (g) and 21 of the Constitution of lndia and against the Principles of Natural Justice and consequently- set-zrside the order dt. 26.11.2021 passed by the identification committee and the order dt. 20.07.2022 passed by the Review Committee. by directing the Respondent No.4 to remove the wilful defaulter status affixed to the Petitioners herein AND/OR lA NO: 1 OF 2025 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petitron, the High Court may be pleased to suspend the operatron of the order dt. 20.07.2022 passed by the Review committee includingl the order dt 26.11.2021 passed by the ldentification Committee of wilfull rlefaulter by Respondent No. 4 bank against the Petitioners, pending disposal of the present Writ Petition lA NO: 2 OF 2025 Petition under Section 151 CPC praying that in the circrmstances stated in the affidavit filed rn support of the petition, the High Court may be pleased to suspend the operation of the declaration of wilfull defaulter by Respondent No. 4 bank against the Petitioners. pending disposal of the present Writ Petition Counsel for the Petitioners: SRI VADEENDRA JOSHI Counsel for Respondent No. 1: SRI PULIMAMIDI SHASHIDHAR REDDY Counsel for Respondent No. 2: SRI K. RATHANGA PANI REDDY Counsel for Respondent No.4: SMT. KALPANA EKBOTE The Court made the 'ollowing: ORDER i+ ii. THE HON'BLE SRI JUSTICE NAGESH BHEEMAPAKA WRIT PETITION No. 16110 of 2o25 ORDER: Tl.ris \,Vrit Petition is filed challenging the orders dated

26.11.2021 and 2O.O7.2022 passed by the Review Committee, '"r'hereby tl-rc petitioners \\'ere declared as wilful defaulters and consequent failure ol respondent Nos.2 and 3, in correcting the sante by taking appropriate action against the respondent No.4 Bank is ille gal, arbitrarl', and violate RBI guidelines, the Supreme Court's ruling in State Bank of India lr.s Jah Deuelopers, ald constitutional rights under Articles 14, 19(1)(g), and 21. The petition seeks to sct aside these orders and direct the removal ol the rvilful delaulter status from the petitioners.

2. HearC Sri Vadecndra Joshi, learned counsel for petitioners, Sri Pulimamidi Sl-rashidhar Rcddl', learned Standing Counsel for Central Government, Sri I{. Rathanga Pani Reddy, learned counsel lor respondent No.2 and Mrs l(alpana Ekbote, learned counsel for respondent No.4. Perused the record

3. Learned counsel for the petitioners submits that petitioners initially focused on cooperative farming to address rural issues like farmer migration in Telangana. They set up a model farm with 2 NBK,J W.P. No.16110 of 2025 the Department of Horticulture arrd used a 75'',o Govcrnment subsidy to prom,rte hi-tech and organic farming. Lr Phast: II, thcy shifted to corpolate farming, aiming to establish lbod processine units to reduct agricultural u'aste and boost marketing and exports. Tl-ris pr,,,ject aligned with the Telangana State l-Iorticulture Mission, rvhicl'r provided a 7 5"1, subsid-v held br the bzinl< and credited after loirn repayment u,ithout interest. Ho,.r,ever, Lhe bank later changecl tl-e loan terms, reducing the total funding to Rs.90 lakhs as a term loan, Rs. 1O iakhs as cash credit, Its. 30 lakhs as overdraft, plus :r home loan takeover ol Rs. 16 lalihs. Hcnce, this Writ Petitior-r

4. Learned lJtanding Counsel for the Centrerl Government, appearing lbr the respondents, submits that the petitioners may be directed to file a fresh representation before tlre respondents, and upon filing such representation. the respondents may be directed to co::rsider the same and pass appro priate orders in accordance rn'itlr law.

5. Considering the submissions made by both the learned counsel and perusing the record, this Court finds that the petitioners have raised substartial grounds questioning the legality and propriety of the impugned orders d:rtecl 26.11.2021 3 NB(,I W.P. No.16110 of2025 afld 2O.O7 .2022. The failure of the respondents to adequately address the grievances and the deviation from applicable guidelines \varrart interlerence. Hence, the said orders are iiable to be set aside.

6. Accordingly, the impugned orders dated 26.11.2021 and

20.O7.2022 are hereby set aside. The Writ Petition is disposed of, directing the petitioners to lile a fresh representation within four u'eeks from the date of receipt of a copl' of this order. Upon receiving such representation, thc respondent Nos.2 to 4 shall consider the same zrnd pass appropriate orders within a period of eight weeks thereafter. There shall be no order as to costs. Miscellaneous applications, if any pending, shall stand closed //TRUE COPY// SD/-A.V.S. PRASAD PUTY REGISTRAR CTION OFFICER at tvlain Build ing,

1. The Governor, Reserve Bank of lndia. Having its o Shahid Bhagat Sing h Road lvlumbai 400001 2 The Authorized Officer, Office of the Ombudsman. Reserve Bank of lndia, Having its office at It/ain Build ing, Shahid Bhagat S ingh Road Mumbai 400001. iil"dtrn"n Manager, Punjab National Bank, Branch Office Somaliguda' cr'l"u tii.ij"ii'aalo rtatirn Coad Somalig uda,.Hvderabad - 500082' One CC to Sri Vadeendra Joshi Advocate [OPUUI 6nE dc i; 5; i;h;;idi shashidnar Redbv]dv?9ate [oPUC] One CC to Smt Kalpana Ekbote Advocate (OPUU) Two CD Copies 3 To,

4. 5 6 7. MBC B t HIGH COUR DAT[: D: 12l09l2 25 -l \!:. 17 llll 296 , ,'l .--::a=-=> ORDER WP.No ,16110 of 2025 DISPOSING OF THE WRIT PETITION WITHOUT COSTS i+ i1' t -. a U 1kr\