Supreme Court issues notice on petition of Dr. Subramanian Swamy for CBI Probe of involvement of RBI officials in scams like Kingfisher, Yes Bank

Supreme Court issues notice on petition of Dr. Subramanian Swamy for CBI Probe of involvement of RBI officials in scams like Kingfisher, Yes Bank

On Monday, 17th October 2022, the Supreme Court of India issued notice on a writ petition filed by Dr. Subramanian Swamy seeking an investigation by the Central Bureau of Investigation into the role of Reserve Bank of India officials in various banking scams. Swamy is a former Member of Parliament and a senior leader of the Bharatiya Janata Party.

Swamy argued that there was "no explanation" as to why RBI officials had not been investigated in "a single case" since 2000, citing a Supreme Court ruling in Delhi Development Authority v. Skipper Construction Company Private Limited [(1997) 11 SCC 430].

"This Court in 1997 had considered the matter that this petition deals with. In this judgement, it is brought out very clearly that the Reserve Bank nominee played a central part in deciding whether a loan should be given, and should also be prosecuted by the CBI. There is no explanation why there has not been a single case starting from 2000 till today, even the latest one of Geetanjali and Vijay Mallya, where the CBI has taken the Reserve Bank to the task."

The petition filed by Subramanian Swamy and advocate Satya Sabharwal states that the number and value of banking frauds detected by the RBI and other agencies during the last couple of years showed that despite enjoying wide, the RBI failed to protect the interests of various stakeholders including depositors, investors and shareholders.

Subramanian Swamy's petition also relies on information obtained under the Right to Information Act of 2005, which purportedly revealed that no Reserve Bank officer had even been "held accountable" for any "dereliction of duty in case of any fraud reported by any bank."  He submitted "The number and value of banking frauds detected by RBI and other agencies during the last couple of years categorically show that despite enjoying the wide powers which in effect tantamount to direct participation in the management of the banks, the RBI has failed to protect the interest of various stakeholders which includes the interest of depositors, investors and shareholders. This failure to protect the interest of stakeholders has led to the loss of faith in the entire banking system in India with the Regulator being supinely indifferent to the series of bank frauds with questions now being raised about it."

Therefore, Subramanian Swamy pleaded before the Supreme Court to order an investigation into the 'Reserve Bank of India and its officials' roles in various banking or financial scams in the country "involving public money, which adversely affects the rights of citizens of this country" by the Central Bureau of Investigation or "any authority that this court decides should investigate."

 

Case Details:-

WP (C) No. 196/2021

Dr Subramanian Subramanian Swamy

vs.

Central Bureau of Investigation

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