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HC directs Rupee Bank employees to place petitions before appropriate court
The Bombay High Court has asked the twin petitioners seeking relief from Reserve Bank of India (RBI) order cancelling banking license of Rupee bank and other remedies to place the petition before the appropriate court and not before the bench as of the members recused from hearing the matter
The Bombay High Court has asked the twin petitioners seeking relief from Reserve Bank of India (RBI) order cancelling banking license of Rupee bank and other remedies to place the petition before the appropriate court and not before the bench as of the members recused from hearing the matter.
The court in its order dated September 19 ruled that, “the petitioners have challenged the action taken by the Reserve Bank of India. Registry to examine and place the petitions before the appropriate court and also not to be placed before the bench of which one of them is a member.”
The Rupee Co-operative Bank employee’s federation had approached the Bombay High Court seeking appointment of a new administration, non-cancellation of bank license and action against the management members guilty of misconduct and misappropriation. The employer federation and other employee’s union by the name Rupee Sangharsha Samiti had filed two independent petitions in the court.
The petition assumes significance in the wake of the apex bank ordering cancellation of the bank license and implementation of the order with effect from September 20. The Reserve Bank of India (RBI) cancelled the license of Rupee Co-operative Bank. RBI on Sept 11, stating that the co-operative bank does not have sufficient capital, no possibility of income, and has also violated rules.
Rishikesh Jalgaonkar and Rahul Alamkhane are the petitioners on behalf of the federation while Naresh Raut has petitioned the court on behalf of Sangharsha Samiti. Earlier, the high court on September 12, 2017 had ruled that RBI must conduct a hearing of both the employee organizations and give its decision on the same.
The court petition states “Rupee Co-operative Bank must be merged with a financially strong bank, RBI officials and a retired judge must be a part of the administration, the property seized from the guilty bank directors must be auctioned immediately and clarification on why previous attempts at merger were rejected. The matter must be probed by CBI and RBI must issue a clarification on the same,” the petition demanded.
According to Jalgaonkar, it was mandatory for RBI to have listened to both the employee organizations but it took a unilateral decision in cancelling the license. “There has been a delay in auctioning the seized property belonging to former bank directors who have been held guilty in the case. Rupee co-operative banks had A grade in 2001 and why did it slide to D grade in 2002,” he questioned.
