Disposed¶45

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

Telangana HC9 Sept 2025WP/26093/2025

Case brief

AI extract

What is this about?

Muthoot Finance gold loan pledge; police notice dated 22.08.2025 by SHO CCS Mancherial demanding borrower loan details and non-release of pledged gold; alleged fraud at SBI Chennur Branch, Crime No. 279 of 2025, P.S. Chennur; seizure panchanama dated 01.09.2025 of 2610.8 grams gold covering 21 loan accounts; deposit before JMFC Chennur vide Form No. 60 dated 04.09.2025; writ disposed at admission stage with consent, liberty to pursue remedies, no costs.

What did the court decide?

Writ petition disposed of at the admission stage with consent; liberty granted to the petitioner to pursue remedies as available under law; no order as to costs; miscellaneous applications, if any, shall stand closed. ¶45

The Muthoot Finance Ltd., Vs The State of Telangana — Company and Corporate | Telangana HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the action of the 4th respondent in issuing the notice dated 22.08.2025 demanding the petitioner company to furnish details of the loans of Respondent Nos. 5 to 8 and directing it not to release the pledged gold, together with personal visits, threats to employees and interference with the petitioner's day-to-day business activities without following due process of law, is illegal, arbitrary and unsustainable. +1 more

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Court's answer

The Court proceeded on the footing that the petitioner had already complied with the notice dated 22.08.2025 and that the case property had been seized under cover of panchanama and deposited before the Court of the Judicial Magistrate of First Class at Chennur.

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Ratio / Principle

In view of the compliance and the deposit of the seized property before the JMFC, Chennur, the writ petition was disposed of at the admission stage with the consent of counsel, granting the petitioner liberty to pursue such remedies as are available under law.

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Detailed headnote1 paragraphs

Writ Petition (Article 226), High Court for the State of Telangana: Muthoot Finance Ltd., Mancherial Branch, challenged a notice dated 22.08.2025 issued by the Station House Officer, CCS, Mancherial Police Station (4th respondent) demanding particulars of gold loans extended to Respondent Nos. 5 to 8 and directing that pledged gold not be released, in the course of investigation of an alleged fraud at SBI Chennur Branch (Crime No. 279 of 2025, P.S. Chennur), along with alleged personal visits and threats to employees. The Government Pleader for Home placed on record instructions of the Assistant Commissioner of Police, Jaipur, that in compliance with the notice the petitioner had handed over pledged gold ornaments weighing about 2610.8 grams pertaining to 21 loan accounts under a seizure panchanama dated 01.09.2025, deposited before the learned Judicial Magistrate of First Class, Chennur vide Form No. 60 dated 04.09.2025. Holding that the petitioner had already complied with the notice and the case property stood seized and deposited before the JMFC, Chennur, the Court (N.V. Shravan Kumar, J.) disposed of the writ petition at the admission stage with consent, granting liberty to pursue available remedies, with no order as to costs; pending miscellaneous applications closed.

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[³²⁵⁵¹

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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD

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(Special Original Jurisdiction)

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TUESDAY, THE NINTH DAY OF SEPTEMBER TWO THOUSAND AND TWENry FIVE

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PRESENT

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THE HONOURABLE SRI JUSTICE N,V.SHRAVAN KUMAR

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WRIT PETITION NO: 26093 OF 2025

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Between:

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The Muthoot Finance Ltd.,, Mancherial Branch, Mancherial District, Telangana. Rep. by its Branch Manager Smt.R.Swarna Devi Wo.A.Sanjeev Kumar, Aged about. 37 years, Occ. Employee Muthoot Finance Ltd., F/o. Sri Sri Nagar, Mancherial, Telangana.

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...PETITIONER

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AND

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The State of Telangana, Rep. by its Principal Secretary, Home Department, Secretariat, Hyderabad.

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The Director General of Police, State of Telangana. Hyderabad.

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The Superintendent of Police, Mancherial District.

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The Station House Officer, CCS, Mancherial Police Station, Mancherial, Telangana.

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Beeresh Kongondi,, S/o.Rajaiah, Aged about. 28 years, Occ. Private Employee, Rl/o. H.No. 4-8212, Shelpally, Jaipur, Mancherial, Telangana5042 1 6 Mobi1e.8466878302, 7 032079932.

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Kodati Rajashekar,, S/o. Swami, Aged about. 30^years, Occ. Private a Employee, Rlio. H.No. 13-439, Shanthi Nagar, Ramakrishnapur, Adilabad, Telangana-504301. Mobi1e.9989266662.

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Bolli Kishan Kumar,, S/o. Laxmaiah, Aged about. 29^years, Occ. Private Employee, Rl/o. H.No. 13-102, Shanthi Nagar, Ramakrishnapur, Adilabad, Telangana-504301 . Mobi1e.900054221 4.

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B. Ravinder Narige,, S/o. Mallaiah, Aged about. 32^yearc, Occ. Private Employee, Rl/o. H.No.4-95, Shetpally, Mancherial, Telangana-5042'16 Mobile.9701 1 1 7739.

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,..RESPONDENTS

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Petition under Article 226 of the Constitution of lnd i praying that in the circumstances stated in the affidavit filed therewith, the {igh Court may be pleased to issue a Writ, order or a direction, more^particulil ly one in the nature of Writ of Mandamus, declaring the action of the 4th Respc ndent in issuing the Notice dated 22-08-2025 demanding the Petitioner Cont ,any to furnish the details of the loans of Respondent Nos.S to 8 and^dire :ting the Petitioner Company not to release the^pledgedgold without havirrt any authority and deliberately making^personal visits and extending threats^{to t} re employees of the Petitioner to hand over the^gold ornaments without any^marI er of right under the guise of investigation of alleged fraud without even sharing r ry of the information of such fraud and interference of the 4th respondent with^the day{oday business activities of the Petitioner's Company without following^dtt, process of law as illegal, unwarranted, unsustainable, arbitrary, unconstitutio ral, against Law as well as principles of natural^justice and consequently^t;' t aside the Notice dated.22-08-2025 of 4lh Respondent and direct the Resporrt ents not to interfere with the business activities of the Petitioner without followint; Cue process of law.

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lA NO: 1 OF 2025

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Petition under Section 15't CPC^praying that in the c rcumstances stated in the affidavit filed in support of the^petition, the High Cor, t may be^pleased to direct the Respondents not to arrest including not to tak,: any coercive steps against the Petitioner Company, not to interfere with the but;i tess activities of the Petitioner Company under the guise of Notice dated L2-O8-2O25 without following due process of law.

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Counsel for the Petitioner : SRI K B RAMANNA DORA

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Counsel for the Respondents No 1 To 4: GP FOR HOME

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Counsel forthe Respondents No 5 To 8: --

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The Court made the following: ORDER

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(

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THE HONOURABLE SRI JUSTICE N.V. SHRAVAN KUMAR

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W.P. No.26O93 of 2025

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ORDER

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Heard the learned counsel for the parties and with their consent this writ petition is disposed of at the admission stage itself.

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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.

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The..=brief facts of the case are that the petitioner 1S \ represented by its Branch Manager is a compaly incorporated

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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 thevare} 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 rhe gold items to the customers without notice of pc ice and trying to seize the same for their investigation purpo s 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.

)

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The learned Government Pleader for.I{ome has placcd lhc

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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.

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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

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As a sequel, misceilaneous applications, if any pending, shall stand closed

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