Subramanya Swamy moves SC seeking to bring out black sheep in RBI

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BJP leader and Rajya Sabha Member of Parliament Subramanian Swamy has approached the Supreme Court seeking a Central Bureau of Investigation (CBI) probe into alleged illegalities committed by officials of the Reserve Bank of India (RBI).

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In a PIL filed by him today, Subramanian Swamy claimed that the RBI had failed to prevent economic scams that have caused great prejudice to the country’s economy and officials of RBI have failed to keep up the faith of the people in the institution with active connivance and in grave violations of their statutory duties.

Swamy’s Advocate Satya Sabharwal, in the last couple of years, various banks have reported scams after scams wherein the role of bank officials were clearly made out but surprisingly not even a single RBI official has been brought to justice despite RBI retaining the power to monitor, regulate, supervise, audit and direct the functioning of all banking companies in India.

The RBI has failed to protect the interests of various stakeholders including depositors, investors and shareholders and this have led to the loss of faith in India’s entire banking system with the Regulator (RBI) being supinely indifferent to the series of bank frauds with questions now being raised about it.

True to the fact, the scheme of the Banking Regulation Act makes the RBI responsible for bank management, more so in case of public sector banks. But unfortunately, in India, none of the RBI officials has ever been held responsible for their role in innumerable banking frauds be it an individual or at high-profile banking, scams occurred in the country till date.

This is evident from the information obtained by the Petitioner through RTI information that revealed no officer of Reserve Bank of India has ever been held accountable for any dereliction of duty in case of any fraud reported by any bank. This is in sharp contrast to the number of frauds exploding in the banking sector in India aggregating to in excess of over Rupees 3 lakh crores.

There is an umpteen number of cases wherein several individuals have failed to get justice even after approaching them for resolution of their disputes with their banks or financial institutions. Most of the cases pertaining to the credit cards, settlement of loans, personal loans, seizures of vehicles, CIBIL issues go unreported as most of them cannot fight against their banking or financial institution owning to their clout at the RBI. Though RBI has set up an OMBUDSMAN cell to redress the grievances of consumers, it has, of late, was reduced to a mockery as most of the judgments go in favour of accused (Banking and Financial Institutions) party for obvious reasons of conniving with them.

Hence, the common man perceives the Ombudsman as humbug. “It’s an eyewash. The Ombudsman Committee members are all colluded and always eager to close the complaint early by trying to convince the complainant in favour of the accused. It’s very rare to get justice”, said the MD of Universal Packers and Movers Bharat Kumar adding that “In my case itself, RBI has failed to take any action against neither HDFC nor its agent Magma Fin Corp despite having court orders to restore my illegally seized DCM with roadworthiness. I am still waging a legal battle for 15 years now”.

A retired banker and a columnist Venkata Chalapathy in Hyderabad while welcoming Swamy’s gesture in moving to SC seeking CBI probe said: “At least people would now come to know who are the black sheep in this murky deals”.

Following are the 10 Specific Scams mentioned by the petitioner in this regard:

i Kingfisher Scam [FIR No RCBSM 2015E 0006]

ii. Bank of Maharashtra Scam [FIR not available in public domain]

iii. Uttar Pradesh-based private sugar organization scam [FIR No RCBD1/2018/E/0002]

iv. Nirav Modi/Punjab National Bank Scam [FIR No.RC0772018E0001]

v. Rotomac Global Private Limited Scam [FIR No RC0062020A0004]

vi. Lakshmi Vilas Bank Scam [FIR No.189/19]

vii. IL&FS Scam [Criminal complaint bearing no 20 of 2019 before Special Judge, Greater Mumbai]

viii. PMC Bank scam [Mumbai Police’s Economic Offences Wing]

ix. Yes Bank Limited Scam [FIR No RC2192020E0004]

x. First Leasing Company of India Limited Scam [FIR No RCMA1 2017 A 0017]

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