MANAPPURAM FINANCE LTD. Vs. STATE OF TELANGANA

JUDGEMENT

(1.) Since the issue involved in all these writ petitions are similar, this batch of writ petitions is disposed of by this common order. The facts in leading case, being, WP.No.37182 of 2021, are set out for the sake of convenience and disposal of this batch of writ petitions.

(2.) Notice dtd. 21/12/2021 issued to the petitioner- M/s. Manappuram Finance Limited, under Sec. 91 of the Criminal Procedure Code, 1973, to return the alleged stolen property deposited in the name of Bantu Jayaraju, for further investigation is challenged in this writ petition.

(3.) The case of the petitioner is that it is a company incorporated under the Companies Act, 1956 and registered as a Non-Banking Finance Company with the Reserve Bank of India. The petitioner company is carrying on its business activities as per the Rules, Regulations and Guidelines issued by the RBI from time to time. The petitioner is primarily in the business of facilitation of loans against the security of gold ornaments to its customers. The gold loans are given on application and after due process of verification of identity and valuation of the security. Pledges are typically used in securing loans, pawning property for immediate cash, by guaranteeing that contract, on failure to repay the loan, the bank has every legal right to dispose the gold to recover the dues as per the terms of the contract of loan.