Centre, RBI can look into NPAs of nationalised banks : Bombay High Court
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The Centre and Reserve Bank of India are competent to look into the non-performing assets of nationalised banks, said Bombay High Court while dismissing a public interest litigation last week. The PIL had sought a probe by Central Bureau of Investigation into the fraudulent grant of loans and the consequent rise of NPAs of nationalised banks.
On March 11 a division bench of Chief Justice Mohit Shah and Justice B P Colabawalla reiterated theirstand when they passed their order for the second time in the same matter. On February 6 the bench declining to entertain '' the PIL filed by activist Ketan Tirodkar had noted that he is seeking to withdraw the PIL and permitted the same.
The matter was again taken up on March 11 where the court referred to its earlier order. ' 'The grievance in this PIL is about non-performing assets of banks. Central government as well as Reserve Bank of India are appropriate authorities entrusted with statutory powers to look into all such financial and economic issues. This court need not entertain the PIL The petitioner is seeking to withdraw the said PIL. Leave as prayed for is granted. PIL is permitted to be withdrawn,'' the order stated.
The bench noted that Tirodkar states that there was some misunderstanding' on February 6 and he never intended to withdraw the petition.'' The bench said nevertheless it is of the view that there is no need to change the February 6 order in so far as it had held that the Centre and RBI are appropriate authorities entrusted with financial and economic issues regarding NPAs. Therefore by deleting the last three sentences, we dismiss this PIL,'' it added.
Tirodkar's petition said NPAs of nationalised banks jumped from Rs 455 crore in March 2008 to Rs 9,190 crore in March 2012 as per the data obtained under the Right to Information Act. Further, that several banks had reported to CBI of at least 140 cases of fraud in loans between 2008 to 2012. However there is no information as to whether cases were registered.
The petition also stated that nationalised banks have not complied with the Banking Regulation Act which requires that periodically annual reports be submitted to the apex bank. Had the reports been submitted the fraud would have come to light, it added. It alleged that this was done to shield the beneficiaries of such bad loans who are in league with bank officials. Also that bank authorities sanctioned loans in many cases by manipulating the feasibility reports and did not report accumulating NPAs to RBI. (Times of India)
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