- 1 - NC: 2025:KHC:13550 WP No. 23560 of 2021 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 1ST DAY OF APRIL, 2025 BEFORE THE HON'BLE MR JUSTICE SURAJ GOVINDARAJ WRIT PETITION NO. 23560 OF 2021 (GM-RES) BETWEEN: 1. SMT. GAYATRI DEVI P., W/O LATE SRI RAMACHANDRA K S AGED ABOUT 64 YEARS 2. SMT. SUBHASHINI, W/O. HARISH, D/O. LATE SRI RAMACHANDRA K S AGED ABOUT 48 YEARS 3. SRI. SHASHIKIRAN S/O. LATE SRI RAMACHANDRA K. S. AGED ABOUT 43 YEARS ALL ARE R/AT NO.5 BRAHMAVARTHA, BASAVESHWARA LAYOUT, BEHIND VINAYAKA LAYOUT, HOOTAGALLI, BELAWADI POST, MYSORE -570 018. PETITIONERS 1 TO 3 REPRESENTED BY GPA HOLDER SRI. RAVIKIRAN, S/O. LATE SRI. RAMACHANDRA K. S, AGED ABOUT 45 YEARS, R/AT NO.7083, 2ND PHASE, 4TH STAGE, VIJAYANAGAR, MYSORE. 4. SRI. RAVIKIRAN, S/O LATE SRI RAMACHANDRA K. S., AGED ABOUT 45 YEARS, Digitally signed by SHWETHA RAGHAVENDRA Location: HIGH COURT OF KARNATAKA - 2 - NC: 2025:KHC:13550 WP No. 23560 of 2021 R/AT NO.7083, 2ND PHASE, 4TH STAGE, VIJAYANAGAR, MYSORE. …PETITIONERS (BY SRI. K. SREEDHAR., ADVOCATE) AND: 1. THE RESERVE BANK OF INDIA, MUMBAI, REPTD. BY ITS GOVERNOR NEW CONTROL OFFICE BUILDING SHAHID SINGH ROAD, FORT MUMBAI- 400 001. 2. THE SOUTH INDIAN BANK SIB HOUSE, TB ROAD, MISSION QUARTERS, THRISSUR, KERALA-680 001. REPTD. BY ITS MANAGING DIRECTOR. 3. THE AUTHORISED OFFICER, THE SOUTH INDIAN BANK LTD., MAHALAKSHMI PURAM BRANCH, ST. JOSEPH INSTITUTION COMPLEX, TEMPLE ROAD, JAYALAKSHMIPURAM, MYSORE-570 012. 4. SRI. VENUGOPAL R., S/O. SRI. H. RAMAMURTHY, AGED ABOUT 53 YEARS, PROPRIETOR M/S. SRI SAI LAKSHMI ENGINEERS BUILDERS AND DEVELOPERS, R/AT NO.1 G. F. SAI HERITAGE ENCLAVE, 7TH MAIN ROAD, 3RD BLOCK, JAYALAKSHMIPURAM, MYSORE-570 012. …RESPONDENTS (BY SRI. FRANCIS XAVIER, ADVOCATE FOR R2(NOC); R1- SERVED;R3- SERVED; - 3 - NC: 2025:KHC:13550 WP No. 23560 of 2021 V/O. DATED 15.09.2022, SERVICE OF NOTICE TO R4- IS HELD SUFFICIENT, V/O. DATED 20.09.2022 R5 - DELETED) THIS WP IS FILED UNDER ARTICLE 226 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT THE R1 TO TAKE SUCH ACTION FOR CANCELLING THE LICENSE GIVEN TO THE R2 TO RUN AS A BANKING INSTITUTION FOR VIOLATION OF RBI REGULATIONS WHILE SANCTIONING AND RELEASING THE FUND ON THE SAME DAY IN ONE LUMP SUM, THEREBY MAKING THE PROPERTY OWNERS TO SUFFER FOR THE ILLEGAL ACTS OF THE BANK MANAGER AND DEVELOPER. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR JUSTICE SURAJ GOVINDARAJ ORAL ORDER 1. The petitioners are before this Court seeking for the following releifs: a. ISSUE A WRIT in the nature of mandamus directing the 1st respondent to take such action for cancelling the license given to the 2nd respondent to run as a banking Institution for violation of RBI regulations while sanctioning and releasing the fund on the same day in one lump sum, thereby making the property owners to suffer for the illegal acts of the bank Manager and Developer. b. Further direct to take legal action against the bank officials of the 2nd respondent for the fraud committed by them to meet the ends of justice. c. PASS such other orders as may be deemed fit and just and expedite the matter in the circumstance of the case, including award, cost of the petition. - 4 - NC: 2025:KHC:13550 WP No. 23560 of 2021 2. Learned counsel for respondent No.2 submits that the loan of the petitioners has been settled and the entire amount has been paid to respondent No.2 under one time settlement and there is no amount due to respondent No.2. Placing his submission on record, the petition stands disposed. 3. It is strange that despite service of notice, there is no representation on part of RBI, it cannot be expected to remain unrepresented after service of notice. Sri.Shantibushan.H, learned DSG is directed to communicate the above to the concerned to take necessary action. SD/- (SURAJ GOVINDARAJ) JUDGE DS CT:TSM List No.: 1 Sl No.: 16