The Telangana High Court on Wednesday declined to interfere with an order issued by a single Judge in writ petitions filed by MP Kanumuri Raghu Rama Krishna Raju, his wife Kanumuri Rama Devi and D. Madhusudhan Reddy challenging the Rural Electrification Corporation’s First Review Committee declaring them wilful defaulters.
A Bench of Chief Justice Alok Aradhe and Justice Anil Kumar Jukanti pronounced the verdict disposing of three writ appeal petitions filed by them challenging the single Judge order. The Bench, however, granted liberty to them to approach the Review Committee of the REC within three weeks. The review committee should take an appropriate decision in accordance with law, the judgment said.
The appellants (members of suspended Board of Directors of M/s Ind Bharath Power (Madras) Limited) availed a loan of ₹2,655 crore to set up a thermal power project in Tamil Nadu. The consortium of banks issued show cause notice to them as to why they should not be declared wilful defaulters stating that part of the loan amount was misused to meet liabilities of other companies.
After examining the matter, the first level committee communicated its decision to the appellants on June 16, 2022, declaring them wilful defaulters. This order was challenged by way of two writ petitions. The single judge upheld the first level committee order.
They appealed against the single Judge order. The Bench headed by the CJ declined to interfere with the single Judge order.