R.K.L. Prasad Vs State Bank of India and Others (Andhra Pradesh High Court)
The writ petition was filed by a Chartered Engineer seeking removal of his name from the Indian Banks Association (IBA) Caution List and a direction to the State Bank of India (SBI) to re-empanel him as a property valuer after completion of the prescribed two-year cooling period. The petitioner contended that the continued inclusion of his name in the IBA Caution List despite expiry of the cooling period was arbitrary, unconstitutional and violative of Article 14 of the Constitution of India.
The petitioner had been empanelled as a valuer with several banks, including SBI. In 2015, SBI assigned him the valuation of properties belonging to M/s Naidu Beverages Pvt. Ltd. After examining the legal opinion, conversion certificate and documents furnished by the bank, and physically inspecting the properties, he submitted valuation reports on 27.01.2015. Nearly three years later, by letter dated 29.11.2018, SBI alleged that the valuation reports contained certain aberrations, that adequate care and due diligence had not been exercised, and that the borrower account had been classified as fraud, exposing the bank to enforcement risk. The petitioner was called upon to explain why his name should not be referred to the IBA Caution List and why a complaint should not be lodged before the Chartered Engineers Association. He submitted his explanation on 27.12.2018. Thereafter, SBI de-panelled him in 2019 and recommended inclusion of his name in the IBA Caution List.
