MUMBAI: Public sector banks had become judge and executioner at once in having look out circulars or LOCs issued against defaulters, said Bombay high .
India News: MUMBAI: Public sector banks had become judge and executioner at once in having look out circulars or LOCs issued against defaulters, said Bombay high .
The Bombay High Court declared public sector lenders ineligible to issue Look Out Circulars (LOCs) under Central government office memoranda. While deeming this practice as arbitrary , the court upheld the constitutionality of the Central government s office memoranda. The ruling nullified all LOCs issued by public sector banks.
Bombay HC rules public banks can t issue LOCs against defaulters. Verdict quashes all circulars. Centre s 2018 amendment allowed banks to issue LOCs in economic interest of India , but HC deems it unconstitutional.