1 DEV,J & GTK, J W.P.No.18449 of 2026 Dated 21.09.2026 APHC010344342026 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) 3564 MONDAY, THE 21st DAY OF SEPTEMBER 2026 PRESENT THE HONOURABLE SRI JUSTICE BATTU DEVANAND THE HONOURABLE SRI JUSTICE TUHIN KUMAR GEDELA WRIT PETITION NO: 18449 OF 2026 Between: 1. Gannavarapu Tulasi, W/o. Srinivas, Aged 48 years, R/o. H. No. 3-115/1, Nerellannma Colony, Suryaraopeta, Indrkpalem Village, Kakinada Rural, East Godavari District (Ernst West Godavari District). ...Petitioner AND 1. The Union of India, Rep by its Secretary, Department of Financial Services Ministry of Finance, Jeeyan Deep Building Sanad, Marg New Delhi-110001. 2. The Authorized Officer, Five Star Business Finance limited, D.No. 40-6/2-13, Kankkamedala Seshagirirao Street, Mogilrajpuram, Vijayawada, Krishna District- 520010 3. The Authorized Officer, Five Star Business Finance limited, 27-3V-47-FF, Opposite to Govt. Ayurveda Hospital, Near Vijayakrishna Super Bazaar Govkrnerpet, Vijayawada, Krishna District-520002 4. The Authorized Officer, Five Star Business Finance limited. Registered Office at New No. 27 Old No.4, Taylor s Road, Kilpauk, Cherinai - 600010, Tamil Nadu. 5. The Branch Head, Five star Business Finance limited Sampriakota Village and Mandal, East podavari District-533440 ...Respondents 2 DEV,J & GTK, J W.P.No.18449 of 2026 Dated 21.09.2026 Counsel for the Petitioner: GANDHAM SR PRASAD Counsel for the Respondents: LAKSHMI POTNURI CENTRAL GOVT Counsel for the Respondents: KUNUKU RAJA SEKHAR The Court made the following order: 3 DEV,J & GTK, J W.P.No.18449 of 2026 Dated 21.09.2026 THE HONOURABLE SRI JUSTICE BATTU DEVANAND THE HONOURABLE SRI JUSTICE TUHIN KUMAR GEDELA WRIT PETITION NO: 18449 OF 2026 O R D E R: 1) Heard learned counsel for the petitioner and the learned counsel for the respondents 2 to 5-Financial Institutions and carefully examined the material available on record. 2) The petitioner is the borrower. He availed loan from the respondent- Financial Institution. Due to default, he is classified as Non-Performing Asset (for short ‘NPA’). Consequently, in demand notice issued under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (for short ‘SARFAESI’) on 11.08.2025, it is stated that the amounts are due from all the financial transactions made by the petitioner as on 10.08.2025 is Rs.21,11,031/- (Rupees twenty one lakh, eleven thousand and thirty one only). Against the said notice dated 11.08.2025, the petitioner filed this writ petition. 3) Learned counsel for petitioner would submit that initiating proceedings under SARFAESI Act, 2002 against the petitioner is contrary to the circulars issued by the Reserve Bank of India (for short ‘RBI’) wherein it is stated that the 4 DEV,J & GTK, J W.P.No.18449 of 2026 Dated 21.09.2026 security proceedings should not be initiated when the debt is below Rs.20,00,000/-. 4) On the other hand, the learned counsel appearing for respondent-Financial Institution, on instructions, would submit that the petitioner availed two loans and both loans classified as NPA and the petitioner has two outstanding loan accounts viz., first loan Account outstanding is Rs.16,72,091/- and for the second loan account outstanding is Rs.4,38,940/-. So in total, it comes to Rs.21,11,031/- (Rupees twenty one lakh, eleven thousand and thirty one only) and as such, the outstanding dues are above Rs.20,00,000/-. The circulars issued by the Reserve Bank of India on this aspect are not applicable to the petitioner’s case and accordingly, he sought to dismiss the writ petition. 5) Having considered the facts and circumstances of the case and the material available on record and on perusal of Section 13(2) notice issued on 11.08.2025 by the respondent-financial institutions, it is categorically mentioned that as on 10.08.2025, all the outstanding due from the petitioner is Rs.21,11,031/-. As such, it is clear that the outstanding dues are above Rs.20,00,000/- and accordingly, the circulars issued by the Reserve Bank of India in respect of non-banking financial institutions are not applicable to the petitioner’s case. 5 DEV,J & GTK, J W.P.No.18449 of 2026 Dated 21.09.2026 6) For the aforesaid-reasons, this writ petition fails and is accordingly dismissed. No costs. Consequently, pending miscellaneous applications, if any, in this case, shall stands closed. _________________________________ SRI JUSTICE BATTU DEVANAND _________________________________ SRI JUSTICE TUHIN KUMAR GEDELA Dated 21.09.2026 KS/VSR Whether the order is : Speaking: Yes Reasoned : Yes Reportable: No Non-Reportable: Yes 6 DEV,J & GTK, J W.P.No.18449 of 2026 Dated 21.09.2026 28 THE HONOURABLE SRI JUSTICE BATTU DEVANAND THE HONOURABLE SRI JUSTICE TUHIN KUMAR GEDELA WRIT PETITION NO: 18449 OF 2026 Dated 21.09.2026 KS/VSR