RACHIT GARG Vs. RESERVE BANK OF INDIA

JUDGEMENT

(1.) Though the matter is listed for hearing on interlocutory applications, with the consent of the learned counsel for both the parties, the matter is heard at length for final disposal. The fifth respondent, though served and represented, learned counsel has remained absent and has not filed statement of objections.

(2.) These writ petitions are filed by the petitioners who are the agreement holders to purchase individual flats from the fifth respondent/developer seeking to set- aside the Order dated 17.03.2016 passed by the second respondent as per Annexure-A; for a writ of mandamus directing the respondent No.1 to initiate requisite proceedings against the respondent No.4 for violation of the provisions of Master Circulars detailed in paragraph 14 of the writ petitions; to declare the Assignment Agreement dated 29.03.2016 executed between the respondent No.4 bank and respondent No.6 for assignment of the financial assistance granted to the respondent No.5 together with underlying security interest to Phoenix Trust-FY 16-15 Scheme B, vide Annexure-Z4 as null and void; for a writ of mandamus directing the respondent No.1 to initiate requisite actions against respondent Nos.2 and 3 for dereliction of their duties; and for a writ of mandamus directing the respondent No.4 Bank to issue final NOCs to the petitioners.

(3.) It is the case of the petitioners that they are the allottees of apartments in the project known as Sovereign Unnathi, being developed and constructed by the respondent No.5/Sovereign Developers and Infrastructure Limited. On 27.04.2010, the respondent No.4/Karnataka Bank Limited issued a Loan Sanction Letter to the respondent No.5/builder for their project known as Sovereign Unnathi. On 17.05.2010, the respondent No.5 executed the Term Loan Agreement with the respondent No.4 for availing loan facility for the aforesaid project. The petitioners, who are flat allottees in the said project, learnt at a later point of time that, the respondent No.5 had mortgaged the project land in addition to the entire constructed area proposed to be built, with the respondent No.4 and did not disclose the said factum to the allottees, including the petitioners. On 05.10.2014, the Association of allottees of the said project i.e., Sovereign Unnathi Apartment Allottees Welfare Association (SUAAWA) submitted a complaint to the respondent No.1/Reserve Bank of India with regard to some of the statutory violations committed by the respondent Nos.4 and 5 which adversely affected the interests of the allottees. Another complaint dated 15.12.2014 with regard to certain other violations by the respondent Nos.4 and 5 was submitted by SUAAWA to the respondent No.1. Aggrieved by the failure on the part of the respondent No.1 to act on the said complaints, SUAAWA and the petitioners herein along with other allottees filed W.P.No.60457/2014 and W.P. Nos.27002-182/2015 seeking to direct the Reserve Bank of India to consider the complaints/ representations made by the petitioners dated 05.10.2014 and 15.12.2014, within the time to be stipulated by this Court and to conduct enquiry with regard allegations made in the representations. The respondents filed objections to the said writ petitions.