Telangana High Court
WP/12687/2026 of Muthoot Finance Vs State of Telangana on 12 October 2026
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE TWELFTH DAY OF OCTOBER TWO THOUSAND AND TWENry SIX PRESENT THE HONOURABLE SMT JUSTICE TANGIRALA MADHAVI DEVI WRIT PETITION NO: 12687 OF 2026 Between: lMuthoot Finance, Regd. Office at NH Bypass
t 321e I
IN THE HIGH COURT FOR THE STATE OF TELANGANA
AT HYDERABAD
(Special Original Jurisdiction)
MONDAY, THE TWELFTH DAY OF OCTOBER
TWO THOUSAND AND TWENry SIX
PRESENT
THE HONOURABLE SMT JUSTICE TANGIRALA MADHAVI DEVI
WRIT PETITION NO: 12687 OF 2026
Between:
lMuthoot Finance, Regd. Office at NH Bypass Palarivattom, Kochi-682028, Branch office at- No.35/36, GF, Vasavi Nagar Colony, Cantoment Area, Karkhana, Secunderabad, Telangana-500015. Represented by its Authorised Representative, D.Naganna, S/o. Somaiah, Age- 33 years, Occu.- Branch Manager,
...PETITIONER
AND
1. State of Telangana, Represented by Principal Secretary, Home Department, Secretariat, Hyderabad.
2. The Station House Officer, P.S. MalkajGiri, Medchal Malkajgiri, Tetangana
3. Krishna Agarwal, S/o Guru Govind Aganrral, Rl/o. H.No.17-2813, Jyothi Nagar, Anumanpet, Malkajgiri, N/o D-405, Satyam Apartment, Vijay Nagar SO,Dist.
Gaziabad, Uttar Pradesh-20 1 009
...RESPONDENTS
Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue Writ, Order or Orders, Direction or Directions more particularly one in the nature of Writ of mandamus declaring the action of the Respondent Nos. 1 and 2 in demanding the custody and seizure of the property i.e. gold ornaments pledged towards security of loan amounts towards the respective Scheme/Loan Accounts of Respondent No. 3 without following due process of law contemplated under BNSS
for seizure of property as illegal and arbitrary the same.
l.A. NO: 1 OF 2026
Petition under section 151 cPc praying that in the circumstances stated in the affidavit filed in support of the petition, the High court may be pleased to direct the Respondent No, 2 to not to harass the Petitioner and seek and demand the custody of the property i.e. gold ornaments from the Petitioner pledged towards security of loan amounts towards the respective Scheme/Loan Accounts of Respondents No. 3
in view of Cr.No. 26412026 P.S.Malkajgiri without following due process of law contemplated under BNSS for seizure of property pending the Writ petition.
Counsel for the Petitioner: SMT POLE MONICA PRADEEpKUMAR
Counsel forthe Respondent Nos.1 & 2: AGP FOR HOME
The Court made the following: ORDER
IN I }IE IICIT {]{)TIITT FOR THE STATE OF TELANGANA
AT HYDERABAD
.I'HE HONOI]RABLE SMT.JUSTICE TANGIRALA
MADHAVI DEVI
WRI'I I'ETITION No. 12687 of 2026
UNR No. HBHC0I 0268502026
DATE: 12.10.2026
Bcfrvrcn:
ir'lltiI,.1-,t I iti;i1i:e.
Iiep. iri ii:; ..\. u ihoriz,:tl Represeutative Mr..D.Naganna
...Petitioner
ANI)
f I'rc S tatc o1' 'I clangana and 'fwo others.
...Respondents
i'hi.-; Wril Petitior, is filed seeking the tbllowing reliel:
'' /rr;r,\/r(. II'rit Ortlcr tn Onlars l)ircttiott or Dircctions ,t):t; t ::!triLul(tt'1.1, onc itt tlrc rtttttIa ol ll.'r.it of mundontut ,.1.1!rtr!nq ii;t: tttlion o/ tha lla,sytnclcnt iVos. I und 2 in t!.t,rri:rtii;t! ilr ctst<tcl) <rncl .rai:ure ttf thc propert.y'i.a.. goltl ()!'nl!ntnt\ plcdged ktwurtl.s sacurily of' loan umounts lorrrird: litc rcspa(titt: Schcme 'l,ouu tlcunml.s o.l Rt'.sprnd,.,ttl No 3 tilhout .futllo+ring tlue proces:s of luv Lttlirr:1r)!irtr(l under B\:,SS lir.sci:u;'c ol propcrty os illt,gul Li:i(i !il'iititt.t lha slint utul ltrt '.s tiitci 1trt.s.t...
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ORDER
I \1t).J \\'P llt); l()16
2. Heard learned counsel lor the pe:titioner and ltlartrcd Assistant Govemment Pleader fbr Home, appearing lbi respottclc'nls Noland2
3. Learned counsel for the petitioner sutrrritted that rt'slrcrtdent No.2 is interfering with the petitioner's busittess opcrations u i:iiortl an1 tawful authority, particularly in relation to the goltl (u'nalrrents pledged with the petitioner bv respondent t',-o.3. "r'ho ha-t ar ailed a loan bv creating a pledge over the said ot'nattren'.s stld stihsc,ii;lr!-illt cleiaulted in repayment of the loan amount. Aggrieved bt. strch intcrf'erence, the present petition has been filed seekir.rg approniiatLl dirr:ctions to protect the petitioner''s legitimate' busitlcss irlterest and po:;session over the pledged property. Learned cortnsei ibr thc petitionel submitted that, in similat' cir-cLtrttstat)ce. this L oLriL, lll \\t.P.No.l468 I of 20 18, granted applopliate prottctii rr t() tlle petitioner and therefore, played that similar relief be grairted in the plesent case as rvell. Leamed counsel also sr"tbrrlitie,J that i!rc pctitioner is willing to produce the pledged ol'tlarllent:, :i'. :tr.i '. ltrrt directed by the lnvestigating Ofticer or the l rial {-.oirrt and rrnrlet-takes not to alienate, part rvith possession ot. ct- ot!',cin i:;e l tvl D.J wP_ 12687 1016
dcal rvith the pleclged ornaments during the pendency of the c lirr irra l pli.rceerlings, ,1. [.earned Asslstlrnt Govemment Pleader tbr Home has stri''riritLeil ihat a cornplaint rvas rcceived fiom Vaishnavi Tirvali against respondent No.3 and others, pursuant to which Crime No.f64 of 1016. datecl 30.03.2026 on the file of Malkajgiri Police Statiorr. \'irlka.igiri. \VAS registered fbr the offences punishable under Section 75, 318(2), 127(2),352 r/w 3(5) of Bharatiya Nyaya Sanhita. l0ll arrd duling interlogation respondent No.3 con f'essed anci sratc'r,l that hc'pledued the gold ornaments u'ith the petitioner'. It is lirltlrer sutnritled that respondent No.2 issued notices dated ()rl.i!"1.-10:b and 09.(t,1.2026, recluiling the petitioner to produce the pli-i.ir,,'cl oiiranrcltts t-relble the lnvestigalion Offic,er lbl the ptrrpose ol' irrvesi i.dat ir.rn and fbr ploducing the same befbre the iLrrisdictional Cou11. Instead of cornplying with the said notice, the l)--tiiiorir-r irrs lilcti thc presellt Writ Petition. It is lurther submitted thcl the investigatiorr is in progress and that, upon completion of thr in'"eslisation, rn ppropriate final report shall be liled before tlrc i:i>rrpc''Lent Court iu accordance law. lt is further subrnitted that, t\lt)-.t \\ l' ll(r8l li)16 except lor conducting the investigation in accrortlallcc \\ itl-r larr ' thc respondent policc are not interfering with the clal'to thl' busi;rcss activities of the petitioner.
5. In vierv of the above sr'tbmissions, thi. Cor-rt't dc:rti: it iil rirC proper to extend similar protection as recoglized by thc Flon'ble Srrpreme Courl irr the case of Mulhoot Fittcorp I in'ilill r' 'l'he Sttrtion House Officer, Criminal Appeal No. 1026 of 2024 (urising out o.f SLP (Crt.) No.95-19 of 202-7). In th': sairl tlccir;icn, the Hon'ltle Supreure Court held that when pletlgcd ai ticlc: rt'e retained by a financial institution as part of its ordinar') hLtsiness ancl are subject to clilninai proceedings. thc instittrticti rr.rLii bL' pennitted to retain possession upon filing an undertakirrg, lrelbit the 'flial Courl to produce sr.rch propcrty as and witcn dirccl'-''1. il're:lt[:v s:rfeguarcling both the investigation and ownet ship rrllhts :rritil adjudication.
6. Accordingly, the petitioner is directed to 1llc. an elilrl,' il ol unrlertaking bcfble the -frial Cotrlt within ii.itrr ('-[) r''':t:l':' lr'or:: iire date of receipt of a copy of this order, incolporatinr (ht- tirll'-!x illg tel rrs:
I t\1t)..1 WP,_1268r l0l(, { i1 1'he petitrorler shall produce the pledged omaments as and vrhcn called upon by the lnvestigating Officer or the Trial Courl tbr inspection, photography, or preparation of panchanatra, ii required; I ii ) 'Ihe pctitioner shall produce the pledged omamerlts irc ii:ic tirc coricerned Court as and when clirected during tlte penciencv of the tLial in Crirne No.264 ol 2026, on the tlle ol' Malkajgiri Police Station, Malkajgiri;
(iii) -l'hc petitiorer shall not hand over, release. or perrnit ledcmptiorr ol'tlre pledged ornalnents in firvour of respondent No.-l or any other person withor-rt prior pennission of the crin,: crncii Ccunl arrd (ir ) The petilioner shall not sell, dispose of, or part with p{isr,.rssi(}il o1' the pledged ornalnents without prior pr.rrnissirirr of the concerned Court trying in Crime No.26'l o1- 20)6
7. i-iporr friing of the said afljdavit, the Investigating OtTicer slrali plocecd s,ith Lhe investigation and trle charge sheet befbre the I \ li)..t \\ !' ll(rli: l(ll rj conrpetent Trial CoLrrt and after filing the charsc. shcet the 'ilial Court shall proceed u'ith the nlatter expeditiorrslr, ait,-l tli<i :rll nc.essarv steps lbr cl'tcctive ad.iLrdication in accordancr .,r ith Il''r. rvhile ensuring that the pledged omaments remaiu dltl\.p|otectccl as pr'r the undertaking filed by the petitior.rer.
8. With the above directions, this Writ Petition is diiiposu.l of. Therc shall be no order as to costs. Miscellaneous apltlications, if any, pending qlrall :,rand closed. ,ITRUE COPY'/ SD/. C.DEEPIKA STANT REGISTRAR SECTION OFFICER ASSI To, The Principal Secretary' Home Department' Secretariat' Hyderabad' State of Tetangana -- p.s. MalkajGiri' Medchal Malkaigiri' Telangana rhe stati on H o use off icer' I i;; #;#*y r1l - oll",l"i",,?51'"?, ",. " o.re cc to sMr PoLE M",,i*, ';,;;;ourt for the r Two CCs to GP FOR HC Hyderabad IOUTI
J
BSR
5. Two CD CoPies I .. 4,,.
HIGH COURT DATED: 1211012026 I \,r \7l 91 p.1E oF 7 CC TODAY < 1'r 't- t( s\s q t-
ORDER
oo H + ae@ WP.No.12687 of 2026 DISPOSING OF THE WRIT PETITION, WITHOUT GOSTS tt + rC 1? ,1