Telangana High Court
WP/38842/2025 of Mr. Venkateswara Rao Karnati Vs Standard Chartered Bank on 9 January 2026
THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE NINTH DAY OF JANUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE NAGESH BHEEMAPAKA WRIT PETITION NO: 38842 OF 2025 Between: lt4r. Venkateswara Rao Karnati, S/o. Karnati Kotaiah,
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IN THE HIGH COURT FOR THE STATE OF TELANGANA
AT HYDERABAD
(Special Original Jurisdiction)
FRIDAY, THE NINTH DAY OF JANUARY
TWO THOUSAND AND TWENTY SIX
PRESENT
THE HONOURABLE SRI JUSTICE NAGESH BHEEMAPAKA
WRIT PETITION NO: 38842 OF 2025
Between:
lt4r. Venkateswara Rao Karnati, S/o. Karnati Kotaiah, Aged 64 years, Occ.
Business, R/o Plot No. 578, Road No. 32, Jubliee Hills, Hyderabad, Telangana- 500033
...PETITIONER
AND
1 . Standard Chartered Bank, 6-3-1090, Raj Bhavan Road, Soma.jiguda, Hyderabad, Telangana, lndia, 500082. Represented by its Authorised Representative.
2. Reserve Bank of lndia, Office at 6, Sansad Marg, Sandsad Marg Area, New Delhi - 1 1000'1 , Represented by Regional Director.
...RESPONDENTS
Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to pass an order or orders, direction or writ more particularly one in nqlure 9f Writ of lvlandamus declaring that the fraud .glg.ssylication made by Respondent No.l against the Petitioner is arbitrary, illegal, in violation of the Principles. of Natural Justice, and consequently set aside the said 'fraud'
classification against the Petitioner.
lA NO: 1 OF 2025
Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the writ petition, the High Court may be pleased to suspend the fraud classification of the Petitioner, grant any such other order(s) as the Hon'ble Court deems fit and proper in the circumstances of the case and in intertest of justice.
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Counsel for the Petitioner: Ms MANASVI REDDY JAKKA
Counsel for the Respondent No.2: M/s N LEGAL HYDERAII tD
Counsel for the Respondent No.1: SRI HARSHA VARDHAII 0.BBURl The Court made the following: ORDER
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IN TI{E IIIGI{ COURT FOR THE STATE OF TELANGANA
AT HYDERABAD
THE HONOURABLE SRI JUSTICE NAGESH BHEEMAPAKA
WRIT PETITION No.38842 of 2025
09.ot.2026
Be tween:
Mr. Venkatcswara Rao Karnati
.. Pcritioner
AND
St:rr.rdard Chartered Bank & one another Respondents
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ORDER:
The petitioner is thc Chairrnan and Managing Director of Kakrnada Seaports Limited (KSPL). It is his case that he approached RBL Bank for renewal of certain credit facilities availed by KSPL, whereupon the RBL informed him vidc tr-mail dated 25.O7 .2025 that his PAN (AGLPK5772C) has been reporled as "fri,udult:nt" ov Standard Chartercd Bank/ respondent No. 1 and Axis Bank, in relation to transactions pcrtaining to a comparly named Sembmarine Kakinada Limited.
1. I lt is the grievance of the pelitioner that respondent No. t has not issucd any notice to him before reporling his PAN as "fraudulent", and such action of respondent No. I is contrary to the RBI Praud Directions, 2024, and without following the procedure under the 'Master Directions on Fraud Risk Management in Commercial Banks (inclucling Regional Rural Banks) arrd AII lndla Financial Institutions, 2024, issucd by the Rtsl, and also in violation oI principles of natural justice. l ! I
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2. Heard Ms. J. Manasvi Redcly, Iearned counsel I r the pcLilioner an(l learned Standing Connsel for respondent No.2. perused he recorcl.
3. .At thc hcarLr.tg lcarned cou,sel for rcspor r crLt No. I SLanrlirrr.l chartt'recl Bzrrk pl;rr,'crl a Memo, r,vherein it is stated ,, pirr-agraph N..5 i.s lollorr s: "In uie.a oJ the procedure mdnddted bg the Hon,bte S L retne Court tn RaJesh Agarudl dnd thc RBI Dtre; orts 2024, th: a."poniini No.1 will btthdra@ the e./.ls,lng frq.ud. ctasslftc( t on oJ the petltlo^cr and complete the @tthdraural process wlth r 3O dags oJ the ddte oJ thts Memo- The so'me ts ulthiut prejudtce r t the ighi and cottenttons ol Respondent No,l q.^d. subject to grt ung ltierty to Respoadent No.1 to respo-dent-lnltidte thJ p.ocess in occorddnce the speclflc gt.jellnes to.ld dourn bg the Ho'. ble Supre ne Cotltt tn Ralesh Agar@ql and the RBI Dlrectlons, 2024..
4. It is clear fr.nt thc Memo, datcd Og.O,t2O2e, I lc rcspon(lent No I rt'ould be rr,'itirdrir*'i;rg tlre rrnpug.ccl "liaud" classificat r r of periti..ers pi\i,J within ilo da-r,s lrom thc date ol Lhc Memo.
5. r\ccordr'rgh. tlre writ. petition is disposed of in t r . Iight of the Me.ro. datcd 09.o 1.202(r. I ror...r'cr, as it is stated in the Mc.r,, r tl-rert it *-ourd tar.:c around 3O days to cromt)ie tc thc proccss of withclrzrwzr l. lLe irnpugr.rt:d .[rau11, classifir:ation sl'r:rll st.ncl suspended until the 'fr-: r rl, c:lassification is lormail-r'q,iLhdrarvn. No cost s. I\{rscellancous per itions pcr-rding, if any, shall sLrr I I closed ;D/. L.VIJAYA LAXMI AS I ISTANT REGISTRAR
//TRUE COPY// SECTION OFFICER
1. The Authorised Representative, Standard Chartered t;, nk. 6-3-1090, Raj Bhavan Road, Somajiguda, Hyderabad, Telangana, lr r ia, 500082..
2. The Regional Director, Reserve Bank of lndia, Office ;r (), Sansad l\rlarg, Sandsad [,4arg Area, New Delhi - -1 '1000'1 ,. To, -:*d
3. One CC to SRI iUANASVI REDDY JAKKA. Advocate [OPUC] 4 One CC to M/s N LEGAL HYDERABAD, Advocate IOPUCI 5 One CC to M/s SRI HARSHA VARDHAN ABBURIIOPUCI
6. Two CD Copies P\1K ].KS dH+- I
HIGH COURT DATED:0910112026 t t o (Jrl a HES 5;n4 t,.\n li,r ..: t Ctx t t
ORDER
WP.No.38842 of 2025 DISPOSING OF THE WRIT PETITION WITHOUT COSTS I : i t- I l L_ l .rr\)- .i,j.:,r::', -r._rr-*€iiffi5