Damarla Venkata Naga Siva Vs the Reserve Bank of India

Damarla Venkata Naga Siva, S/o. D. Veeranjaneyulu, aged 34 years Occ Private Employee, R/o. Flat No. 401, 4th Floor,^{SivaRamanivas} Raavi Subbaiah Colony, Tadigadapa Donka Road, Yanamalakuduru Krishna District, A.P.

¶10

...PETITIONER

¶11

AND

¶12

The Reserve Bank Of India, 6-1-56, Secretariat Road, Saifabad, Khairatabad, Hyderabad - 500004, Rep. by its Chief General Manager.

¶13

The Tata Capital Limited, Regd. Office 11th Floor, Tower-A, Penusala Business Park, Ganpatrao Kadam Marg, Tower Parel, Mumbai^-400 013.

¶14

The IDFC First Bank Limited, Regd. Office KRM Tower, 7th Floor, No.I Harrington Road, Chetpet, Chennai - 600 031, Tamilnadu^State.

¶15

The HDFC Bank Ftd., Regd. Office HDFC House, H T Parekh Marg 165166, Back bay Reclamation Church Gate, Mumbai -^400020.

¶16

The Hero Fin Corp Limited, Regd. Office 34, Community Centre, Basant Lok Vasant Vihar, New Delhi - 110057.

¶17

I

¶18

The Bajaj Finance Limited, Regd. Office Bajaj Auto Limited Complex, Mumbai Pune Road, Akurdi, Pune - 411 035, Maharastra^State.

¶19

The Axis Bank, Corporate Office Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai - 400 025.

¶20

The SBI Cards and Payment Services Limited, DLF Infinity Towers, Tower-C, 12th Floor, Block-2, Bkuilding-3, DLF Cyber City, Gurgaon - 122 002, Flaryana, India.

¶21

The ICICI, Regd. Office ICICI Bank Tower, Near Chakli Circle, Old Padra Road, Vadodara - 390 007, Gujarat, India.

¶22

The Early Salary Services Pvt. Ltd., Regd. Office Unit^No.404 The Chambers, Viman Nagar, Pune - 411 014, Maharastra.

¶23

The Krazybee Services Private Limited, Regd. Office^3rdFloor No. 128/9, Maruthi Sapphire, HAL Airport Road, Murugesh Palya, Bangalore - 560 017.

¶24

The Respo Financial Capital Pvt. Ltd., 2th Floor, Dyna^Business Park, Plot No. A-57, Street No.I, MIDC, Mulgaon, Andheri East, Mumbai - 400 093, Maharastra State.

¶25

Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a writ, order or a direction, more particularly one in the nature of Writ of Mandamus, declaring the respondents 2 to 12 in sending Recovery Agents to the residence of the petitioner, as well as making phone calls to the petitioner at odd hours, as illegal, arbitrary and against the Articles 14, 19 and 21 of the Constitution of India and consequently direct the respondents 2 to 12 to follow the procedure as contemplated by law to recover any loans that may be due to the respondents.

¶26

r'

¶27

lA NO: 1 OF 2025

¶28

Petition under Section 151 CPC praying that in the^{circumstances} stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the respondents 2 to 12 to stop sending Recovery Agents to the petitioner’s residence, as well as making phone calls at odd hours, pending disposal of writ petition.

¶29

Counsel for the Petltioner(s): SRI. PANDAMANENI SRINIVASA^RAO

¶30

Counsel for the Respondent Nos.1 to 12: NONE APPEARED

¶31

The Court made the following: ORDER

¶32

APHC010002622025

¶33

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI 14? (Special Original Jurisdiction)

¶34

[3329]

¶35

TUESDAY ,THE SEVENTH DAY OF JANUARY TWO THOUSAND AND TWENTY FIVE

¶36

PRESENT

¶37

THE HONOURABLE SRI JUSTICE VENKATESWARLU NI MM AG AD^DA

¶38

WRIT PETITION NO: 285/2025

¶39

Between:

¶40

Damarla Venkata Naga Siva

¶41

...PETITIONER

¶42

AND

¶43

The Reserve Bank Of India and Others

¶44

...RESPONDENT(S)

¶45

Counsel for the Petitioner:

¶46

1.PANDAMANENI SRINIVASA RAO

¶47

Counsel for the Respondent(S):

¶48

¶49

The Court made the following:

ii 3 1’

,

¥

THE HON’BLE SRI JUSTICE VENKATESWARLU NIMMAGADDA

¶54

WRIT PETITION No.285 OF 2025

¶55

ORDER:-

¶56

This writ petition is filed under Article 226 of the^{ConstitutionoftheIndia}

¶57

seeking the following reliefs;-

¶58

“to issue a writ, order or a direction more particularly^onein the nature of Writ of Mandamus declaring the respondent^Nos. 2 to 12 in sending Recovery Agents to the residence^ofthe petitioner as well as making phone calls to the petitioner^at odd hours as illegal, arbitrary and against the Articles 14, 19 and 21 of the Constitution of India and consequently^directthe respondent Nos. 2 to 12 to follow the procedure as contemplated by law to recover any loans that may be^dueto the respondents and pass such other order or orders... ”

¶59

¶60

Heard learned counsel for petitioner.

¶61

The case of the petitioner in brief is that the petitioner^herein availed various loans from respondent Nos. 2 to 12 and is paying EMIs regularly. Even though he is paying the EMIs to respondent Nos. 2 to 12, they are resorting recovery methods contrary to the regulations issued by the 1®' respondent i.e., Master Direction-RBI (Regulatory Framework for Microfinance Loans) Directions 2022, dated 14.03.2022. He further submits that as per the circular/ regulations dated 14.03.2022, the non-banking financial companies/^{institutionscannotresort} for recovery methods contrary to the guidelines for recovery of loans. He further submits that respondent Nos. 2 to 12 are initiating and harassing the petitioner contrary to the recovery guidelines dated 14.03.2022 issued by the 1 St respondent.

¶62

V

¶63

V J

¶64

Having heard the submissions made by the learned counsel for the petitioner and on perusal of the material placed on^{record,thisCourt} is of the considered view that the present writ petition can be disposed of, directing respondent Nos. 2 to 12 to adhere to the guidelines/^{regulation7.4ofMaster} Direction-RBI (Regulatory Framework for Microfinance^{Loans)Directions,2022,} dated 14.03.2022 issued by the 1®’ respondent.

¶65

For better understanding Regulation 7.4 of Master Direction^-Reserve Bank of India (Regulatory Framework for Microfinance^{Loans)Directions,2022,} dated 14.03.2022 is extracted hereunder:

¶66

7.4 Guidelines related to Recovery of Loans

¶67

7.4.1 Each RE shall put in place a mechanism for identification^of the borrowers facing repayment relate d difficulties, engagement with such borrowers and providing them necessary guidance about the recourse available. 7.4.2 Recovery shall be made at a designated/ central designated place decided mutually by the borrower and the RE. However, field staff shall be allowed to make recovery at the place of residence or work of the borrower if the borrower fails to appear at the designated/ central designated place on two or more successive occasions.

¶68

7.4.3 RE or its agent shall not engage in any harsh^methods towards recovery. Without limiting the general application of the foregoing, following practices shall be deemed as harsh: (i) Use of threatening or abusive language, (ii) Persistently calling the borrower and/ or calling^theborrower before 9.00 a.m. and after 6.00 p.m.

¶69

(Hi) harassing relatives, friends, or co-workers of^theborrower, (iv) Publishing the name of borrower.

¶70

%

¶71

(v) Use or threat of use of violence or other similar means to harm the borrower or borrower’s family/ assets/ reputation,

¶72

(vi) misleading the borrower about the extent of the debt or the consequences of non-payment. 7.4.4 Each RE shall have a dedicated mechanism for redressal of recovery related grievances. The details of this mechanism^shall be provided to the borrower at the time of loan disbursal.

¶73

Having considered the submissions made by the learned^{counselforthe} petitioner and on perusal of the guidelines/ regulations as extracted above, the present writ petition is disposed of, directing respondent^{Nos.2to12toadhereto} the guideline No.7.4 of Master Direction-RBI (Regulatory Framework for Microfinance Loans) Directions, 2022, dated 14.03.2022 (referred supra), while proceeding with the recovery of money from the petitioner. There shall be no order as to costs.

¶74

Miscellaneous petitions, if any pending, in this case,^{shallstandclosed.}

¶75

I

¶76

Sd/- M SRINIVAS //TRUE COPY// ASSISTANT REGISTRAR

¶77

SECTION OFFICER

¶78

To,

¶79

The Reserve Bank Of India, 6-1-56, Secretariat Road, Saifabad, Khairatabad, Hyderabad - 500004, Rep. by its Chief General Manager.

¶80

The Tata Capital Limited, Regd. Office 11th Floor, Tower-A, Penusala Business Park, Ganpatrao Kadam Marg, Tower Parel, Mumbai^-400 013.

¶81

The IDFC First Bank Limited, Regd. Office KRM Tower, 7th Floor, No.I Harrington Road, Chetpet, Chennai - 600 031, Tamilnadu^State.

¶82

The HDFC Bank Ltd., Regd. Office HDFC House, H T Parekh Marg, 165166, Back bay Reclamation Church Gate, Mumbai -^400020.

¶83

The Hero Fin Corp Limited, Regd. Office 34, Community Centre, Basant Lok Vasant Vihar, New Delhi - 110057.

¶84

»'

¶85

The Bajaj Finance Limited, Regd. Office Bajaj Auto^{LimitedComplex,} Mumbai Pune Road, Akurdi, Pune - 411 035, Maharastra^State.

¶86

The Axis Bank, Corporate Office Bombay Dyeing Mills^Compound, Pandurang Budhkar Marg, Worli, Mumbai - 400 025.

¶87

The SBI Cards and Payment Services Limited, DLF Infinity^Towers, Tower-C, 12th Floor, Block-2, Bkuilding-3, DLF Cyber^{City,Gurgaon-} 122 002, Flaryana, India.

¶88

The ICICI, Regd. Office ICICI Bank Tower, Near Chakli^Circle,Old Padra Road, Vadodara - 390 007, Gujarat, India.

¶89

The Early Salary Services Pvt. Ltd., Regd. Office Unit^No.404, The Chambers, Viman Nagar, Pune - 411 014, Maharastra.

¶90

The Krazybee Services Private Limited, Regd. Office^3rdFloor, No. 128/9, Maruthi Sapphire, HAL Airport Road, Murugesh^Palya, Bangalore - 560 017.

¶91

The Respo Financial Capital Pvt. Ltd., 2th Floor, Dyna^Business Park, Plot No. A-57, Street No.I, MIDC, Mulgaon, Andheri^East,Mumbai - 400 093, Maharastra State.

¶92