2026:APHC:23268 APHC010045212026 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI [3327]

(Special Original Jurisdiction)

WEDNESDAY, THE ELEVENTH DAY OF MARCH TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE K. SREENIVASA REDDY WRIT PETITION NO.2991 OF 2026 Between:

Bhumireddy Rama Krishna Reddy ...PETITIONER AND The Union of India and others ...RESPONDENTS Counsel for the Petitioner:

1. KARANKI YASWANTH Counsel for the Respondent(S):

1. KONA NDV RAMANA RAO

2. KUNUKU RAJA SEKHAR The Court made the following ORDER:

This Writ Petition, under Article 226 of the Constitution of India, is filed by the petitioner, seeking the following relief:

"....to issue a Writ or order or orders or direction more particularly one in the nature of Writ of Mandamus declaring the action of respondent Nos.3 to 7 in resorting to illegal methods for recovery of amounts from the petitioner without following due process of law, as illegal, arbitrary, unjust and also in violation of Articles 19, 21 and 300-A of the Constitution of India and consequently direct respondent Nos.1 and 2 to take appropriate action against respondent Nos.3 to 7 from resorting to any illegal methods for recovery of amounts from the petitioner without following due process of law in the interest of justice.”

2. Heard learned counsel for the petitioner and learned counsel for the respondents.

3. Grievance of the petitioner is that respondent Nos.3 to 7 are entitled to recover loan amount due by the petitioner, in terms of the loan agreements by following the procedure established under law, and they are not having any right to recover the loan amount by using force or other methods which are unknown to law.

4. The issue raised in this Writ Petition is no longer res integra.

5. It is apt and appropriate to extract latest guidelines issued by the Reserve Bank of India on 12.08.2022 with regard to outsourcing of Financial Services -Responsibilities of regulated entities employing Recovery Agents, which reads as follows:

"RBI/2022-23/108 DOR.ORG.REC.65/21.04.158/2022-23 August 12, 2022 Madam/ Sir, Outsourcing of Financial Services - Responsibilities of regulated entities employing Recovery Agents The Reserve Bank of India has from time to time advised regulated entities (REs) that the ultimate responsibility for their outsourced activities vests with them and they are, therefore, responsible for the actions of their service providers including Recovery Agents (hereafter referred to as 'agents').

2. It has been observed that the agents employed by REs have been deviating from the extant instructions governing the outsourcing of financial services. In view of concerns arising from the activities of these agents, it is advised that the REs shall strictly ensure that they or their agents do not resort to intimidation or harassment of any kind, either verbal or physical, against any person in their debt collection efforts, including acts intended to humiliate publicly or intrude upon the privacy of the debtors' family members, referees and friends, sending inappropriate messages either on mobile or through social media, making threatening and/or anonymous calls, persistently1 calling the borrower and/or calling the borrower before 8:00 a.m. and after 7:00 p.m. for recovery of overdue loans, making false and misleading representations, etc.

3. The instructions contained in para 2 above shall supplement and be read in conjunction with the existing guidelines/directions issued by the Reserve Bank of India, as amended from time to time, including those tabulated in Annex.

4. Any violation in this regard by REs will be viewed seriously.

Applicability

5. This circular shall apply to the following REs:

(a) All Commercial Banks (including Local Area Banks, Regional Rural Banks, and Small Finance Banks) excluding Payments Banks;

(b) All All-India Financial Institutions (viz. Exim Bank, NABARD, NHB, SIDBI, and NaBFID);

(c) All Non-Banking Financial Companies including Housing Finance Companies;

(d) All Pri