The Muthoot Finance Ltd v. 1. The State of Telangana

Counsel for the Petitioner : SRI K B RAMANNA DORA Counsel for the Respondents No 1 To 4: GP FOR HOME Counsel forthe Respondents No 5 To 8: -- The Court made the following: ORDER a ( THE HONOURABLE SRI JUSTICE N.V. SHRAVAN KUMAR ORDER W.P. No.26O93 of 2025 Heard the learned counsel for the parties and with their consent this writ petition is disposed of at the admission stage itself.

2. This writ petition is filed questioning the action of the 4t1' respondent in issuing notice dated 22.08.2025 demanding the petitioner company to furnish the details of the loans of respondcnt Nos.S to 8 and directing the petitioner company not to release the pledged gold without having any authority and deliberately making personal visits and extending threats to the employees of the petitioner without any manner of right under the guise of investigation of alleged fraud without even sharing any of the information of such fraud and inter[erence of 4fr respondent with day to day business activities of the petitioner's company without following due process of law as illegal, unwarranted, unsustainable, arbitrary, unconstitutional, against iaw as well as principles of natural justice and consequently, set aside the Notice dated

22.08.2025 of the 4ft respondent and direct the respondents not to interfere with the business activities of the petitioner.

3. The..=brief \ facts of the case are that the petitioner 1S represented by its Branch Manager is a compaly incorporated \ 2 under the provisions of Companies Act ald has lice r se to deal with Iinance business including sanction of loanr; basically on pledging/mortgaging gold and having branches acrr ;s the country. lt is submitted that petitioner sanctioned gold loans to respondent Nos.5 to 8 from time to time against the pledge of 1 old ornaments as security, as per the RBI guidelines. The 4e rer;. ,ondent served notice dated 22.Oa.2O25 to the petitioner,s branch er d requested to furnish the details of the borrowings of responde et Nos.S to 8 n'ithout even mentioning detaiis of the alieged crir Le or even the I?.t-tl details to the petitioner company and informin 1 that thev are invesLigating a fraud case alleged to have been cor rmitted at SBI Chcnnur Branch and in connection with Crime l,,l l.279 of 2025 belbre 1).S. Chennur directing the petitioner compar. not to release I rhe gold items to the customers without notice of pc to seize the same for their investigation purpo s ice and trying r which were dcposited by respondent Nos.S to 8 by availing lo:r Ls bv pledging gold. It is further submitted that the police have r ( right to seize the gold, and issued the impugned notice and high : rndedly trying to seize the gold even without payment of loan arnc unts and that petitioner has no connection or involvement with 'espect to the allegations that took place in S.B.I.Chennur Brancl.r Questioning the same, the present writ petition is h1ed. -----z- )

4. The learned Government Pleader for.I{ome has placcd lhc I instructions submitted by Assistant Commissioner of police, Jaipur wherein it is submitted that in complialce with the notice dated

22.O8.2O25 issued by the Sub-Inspector of Police, CCS, Mancherial, the petitioner handed over the pledged gold ornaments weighing about 2610.8 grams pertaining to 2l Loan Accounts pledged by A- I,4,5,6,7,8,1O,12 aod 34 under cover of seizure panchanama dated O1.O9.2025 and the sarne was deposited before the Court of Honhle Judicial Magistrate of First Class, Chennur vide Form No.60, dated O4.O9.2O25. It is further submitted that since the petitioner has complied with the notice, no further cause survives in the u,rit petition.

5. In that view of the matter, since the petitioner has alreadl, complied to the notice dated 22.O8.2025 and the case propertv has been seized under the cover of panchanama and deposited before the Court of Judicial Magistrate of First Class at Chennur, this writ petition is disposed of with consent granting liberty to the petitioncr to pursue his remedies as available under law. There shall be no order as to costs As a sequel, misceilaneous applications, if any pending, shall stand closed //TRUE GOPY// Sd/- P.C. SULEKHA D ASS TANT REGI R N OFFICER To 1 The Principal Secretary, Home Department, Hyderabad. State Te ngana, secretariat,

2. The Director General of Police, State of Telangana, Hyderabad. ,rl ,. rJ;, .

3. The Superintendent of Police, Mancherial District. 4. The station House officer, ccs, Mancherial police Station, [\rlancherial, Telangana.

5. One CC to SRI K. B. RAMANNA DORA, Advocate tOpL Cl 6. Two CCs to GP for Home, High Court for the Sil rte of Telangana at Hyderabad. [OUT] Two CD Copies 7 D.N MP ;,i,i I I 1 ( I HIGH COURT t t DATED:0910912025 \ ORDER WP.No.26093 of 2025 o \-] ': \ v .t. \\ ]ii rrli r,i,li . :lSpnrn -:.* ,.. -:: DISPOSING OF THE WRIT PETITION WITHOUT COSTS ,J( ,,n\,\*