RBI needs to consider issue of paying salary to teachers in Maharashtra, says Bombay High Court | Mumbai news - Hindustan Times
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RBI needs to consider issue of paying salary to teachers in Maharashtra, says Bombay High Court

Hindustan Times | ByPress Trust of India, Mumbai
Dec 05, 2016 04:54 PM IST

Solapur co-operative bank counsel VM Thorat informed the HC on Monday that the bank receives around Rs95 crore from the state government for salaries of teachers in aided schools, but owing to the circular, it is not able to disburse the amount.

The Bombay High Court (HC) on Monday asked the Reserve Bank of India (RBI) to consider the issue of payment of salaries to aided school teachers since it is disbursed through district cooperative banks, which have been prohibited from depositing and exchanging old currency notes.

The Bombay High Court has adjourned the cooperative banks’ petitions to December 14.(HT FILE PHOTO)
The Bombay High Court has adjourned the cooperative banks’ petitions to December 14.(HT FILE PHOTO)

The Mumbai, Solapur, Nashik and Pune District Central Cooperative Banks had approached the HC challenging the RBI circular dated November 14, restricting them from exchanging or depositing old currency notes of Rs500 and Rs1,000, which were declared as illegal tender under the government’s demonetisation move on November 8.

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Solapur co-operative bank counsel VM Thorat informed the HC on Monday that the bank receives around Rs95 crore from the state government for salaries of teachers in aided schools, but owing to the circular, it is not able to disburse the amount.

“RBI needs to consider this issue. We cannot take this matter up on merits as the Supreme Court is already seized of the main contentions raised in the petitions, but this particular issue about teachers’ salaries can be looked into,” said justice Oka.

“It is common knowledge that teachers of aided schools get their salaries from cooperative banks. We want to know how teachers will get their salaries now,” the court said.

Thorat informed the bench on Monday that the banks have filed applications in the Apex Court seeking clarification on whether the HC can hear the matter.

“The application along with the transfer petition filed by the Union government seeking for all petitions filed on the demonetisation issue to be heard by the SC itself is posted for hearing on December 9,” the counsel said.

The HC then adjourned the cooperative banks’ petitions to December 14.

Read

Currency crunch: People find, chase cash vans to ATMs!

SC defers hearing of pleas challenging demonetisation to Dec 9

Demonetisation brouhaha: Opposition plans to corner Maharashtra government, CM says he is ready

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