The Supreme Court on Monday issued notices to the Reserve Bank of India (RBI) and central bureau of investigation (CBI) on Bharatiya Janata Party (BJP) leader Dr Subramanian Swamy s plea seeking a probe by CBI into the alleged role of nominee directors in bank loan fraud cases.
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The Reserve Bank of India (RBI), hiding behind its role as India’s monetary authority, has escaped all external scrutiny and accountability regarding its second role as regulator of banking and finance companies which is marked by repeated failures. Until a few years ago, these failures were largely hidden by force-merging failed institutions with public sector banks (PSBs). This trick is no longer possible with non-performing loans of banks soaring past Rs 10 lakh crore and the collapse of several ‘systemically important’ shadow banks exposing the high cost of failed supervision.
Maverick politician and economist Dr Subramanian Swamy has filed a public interest litigation (PIL) in the Supreme Court, seeking a probe by central bureau of investigation (CBI) into the ‘illegal acts of RBI officials’, leading to various scams. The petition lists 10 big scams and says, “not a single RBI official has been brought to justice despite RBI retaining the power to monitor,
Plea seeks probe into role of RBI officials in bank scams
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Officials acted in direct violation of statutes, says petition
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Officials acted in direct violation of statutes, says petition
BJP leader and MP Subramanian Swamy on Wednesday moved the Supreme Court seeking a Central Bureau of Investigation (CBI) probe into the role played by Reserve Bank of India (RBI) officials in various banking scams that plague the country’s economy, causing prejudice to public interest.
The petition, filed by Dr. Swamy and advocate Satya Sabharwal, said the alleged involvement of RBI officials in scams involving various entities, including Kingfisher, Bank of Maharashtra, an Uttar Pradesh-based private sugar organisation, Nirav Modi, Rotomac Global, Lakshmi Vilas Bank, IL&FS, PMC Bank, Yes Bank and First Leasing Company of India, had not been investigated.