$~16 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 5273/2024 and CM APPL. 21577/2024 ASHOK TIWARI .....Petitioner Through: Mr. Saurabh Kirpal, Senior Advocate with Mr. Ashutosh Thakur, Mr. Amit Kumar and Mr. Ritesh K. Singh, Advocates.

versus RESERVE BANK OF INDIA & ANR. .....Respondents Through: Mr. Dhaval Mehrotra and Ms. Aditi Desai, Advocates for R1.

Mr. Sanjay Bajaj and Mr. Rajat Prakash, Advocates for R2.

CORAM:

HON'BLE MS. JUSTICE JYOTI SINGH

O R D E R

% 28.11.2025

1. This writ petition is filed on behalf of the Petitioner under Article 226 of the Constitution of India seeking the following reliefs:-

“(i) Issue an appropriate Writ/ Order or Directions in the nature of certiorari or any other appropriate writ thereby quashing & setting aside the classification / declaration of the account of Vayam Technologies Limited i.e. the Company as Fraud by Respondent No.2; and/or (ii) Issue an appropriate Writ/ Order or Direction in the nature of mandamus directing the Respondents not to take any action against the Petitioner or the Company or any of its Officers/Guarantors pursuant to the wrongful classification/declaration of the Account of the Company as Fraud; and/or (iii) Issue an appropriate Writ/Order or Direction directing the Respondents to withdraw any complaint or proceeding or publication that may have been initiated by them pursuant to the classification/declaration of the Account of the Company as Fraud; and/or (iv) Issue an appropriate writ/order or directions thereby declaring the action of Respondent no.2 as contrary to the Master Directions on Frauds–classification and reporting by commercial banks and select F.Is dated 01.07.2016 (as updated from time to time) which imbibes within itself the principles of natural justice as laid down by the Hon’ble Supreme Court of India in (2023) 6 SCC 1; and/or (v) Issue an appropriate Writ/Order or Direction in the nature of mandamus or any other appropriate Writ/Order or Direction restraining the Respondents from acting on the said Master Directions; and/or (vi) Issue any other appropriate Writ, Order or Direction as this Hon’ble Court deems just and proper, in the facts and circumstances of the present matter.”

2. In this writ petition, Petitioner has laid a challenge to the impugned action of Respondent No.2/IDBI Bank, whereby accounts of M/s Vayam Technologies Limited of which the Petitioner is the promoter-guarantor have been declared as ‘Fraud’ allegedly contrary to Forensic Audit Report dated 09.07.2019 declaring the accounts as ‘no fraud’. Despite numerous requests of the Petitioner, no formal order of declaration has been communicated to the Petitioner and more importantly, classification of the accounts as fraud is without show cause notice and/or opportunity of hearing and the action of Respondent No.2 is thus ex facie erroneous, unreasonable, unfair and arbitrary.

3. As brought forth in the petition, on 23.07.2019, Forensic Audit Report dated 09.07.2019 was discussed in the Joint Lenders Forum Meeting and it was found that no fraud was reported. Consortium accepted the report on 05.11.2019 and majority banks agreed not to treat the company account as fraud. For the first time, Respondent No.2 informed the Petitioner vide e- mail dated 15.09.2023 that the account of M/s Vayam Technologies Limited was declared as fraud by IDBI Bank on 22.11.2022. Representation was made by the Petitioner on 05.10.2023 seeking withdrawal of the classification and declaration followed by reminder on 20.10.2023 but to no avail.

4. By an e-mail dated 22.12.2023, IDBI Bank informed the Petitioner of the declaration as fraud in terms of RBI direction, to which objection was preferred by the Petitioner vide e-mail dated 16.01.2024. On 02.02.2024, IDBI Bank issued a Public Notice and also called upon the Petitioner offering buyback of shares of M/s Vayam Technologies Limited, which compelled the Petitioner to approach this Court and vide order dated 15.04.2024, Respondents were restrained from