AR.JEYARHUTHRAN Vs. THE UNION OF INDIA

JUDGEMENT

(1.) THE petitioner, through this public interest litigation, seeks quashing of the communication, dated 03.05.2012, addressed by the Reserve Bank of India to the petitioner.

(2.) THE petitioner had earlier filed a writ petition in W.P.(MD)No. 2206 of 2012, seeking to raise the issue of allegedly exorbitant interest rates being charged from borrowing public by the Non -Banking Financial Companies (NBFCs), more specifically the 4th and the 5th respondents. A Division Bench of this Court, by order dated 24.02.2012, was not inclined to entertain the petition as a Public Interest Litigation but, at the same time, felt that the issue raised was a laudable one and thus the statutory bodies, like the Reserve Bank of India, who are to regulate non -baking institutions, are to examine the matter and the petitioner was given liberty to do so. The petitioner, thus, addressed a letter, dated 25.01.2012, to the Governor, The Reserve Bank of India, raising the same issue, to which the impugned reply, dated 03.05.2012, has been sent in the following terms:

(3.) WE find from the typed -set of papers filed by the 2nd respondent, last set of such guidelines were issued on 18.02.2013. The issue of regulation of excessive interest charged by NBFCs has also been dealt with, by reference to Circulars issued by the Reserve Bank of India, such Circulars being dated 24.05.2007 and 02.01.2009. In the Circular dated 24.05.2007, reference has been made to the complaints received on account of excessive interest charged on certain loans and advances by NBFCs. We reproduce the same as under: