SEKAR REPORTER

Court News from Madras High Court

Banking Regulation: Union seeks 3 weeks, Madras HC grants 2 weeks Banking Regulation (Amendment) Bill introduced in LS on Monday

by ·

IFFCO Banner
Home Banks
Banking Regulation: Union seeks 3 weeks, Madras HC grants 2 weeks
Banking Regulation (Amendment) Bill introduced in LS on Monday

Rohit Gupta by Rohit Gupta September 16, 2020
Banking Regulation: Union seeks 3 weeks, Madras HC grants 2 weeks
The Union Govt sought further three weeks’ time from the Madras High Court to file a counter affidavit in the case of two urban co-op banks’ case opposing the ordinance promulgated by the Union Government bringing all cooperative banks under the supervision of RBI

The next hearing would be on 13th October 2020 on the writ petition filed by Tamil Nadu based two cooperative banks in Madras High Court, challenging the recent ordinance promulgated by the Union Government bringing all cooperative banks under the supervision of Reserve Bank of India (RBI).

In the last hearing held on 1st September 2020, the representative from the Union of India sought for further three weeks’ time to file a counter affidavit but the court has given two weeks to file a rejoinder in the matter.

The petitions were filed by Big Kanchipuram Cooperative Town Bank Ltd and the Velur Cooperative Urban Bank Ltd.

According to the court order, ” A counter affidavit has already been served on behalf of the second respondent (RBI) on the learned counsel for the petitioner. The first respondent (Union of India) has sought for further three weeks’ time to file a counter affidavit”.

“Learned counsel for the petitioner may file a rejoinder within two weeks thereafter. List on 13.10.2020”, it further reads. The first bench, comprising Chief Justice A P Sahi and Justice Senthilkumar Ramamoorthy heard the case.

P.H.Aravindh Pandian Additional Advocate General assisted by L.P.Shanmugasundaram was representing the Kanchipuram Cooperative Town Bank Limited. On behalf of Reserve Bank of India senior counsel, A L Somayaji opposed the arguments.

Talking to Indian Cooperative Hari Krishan, General Manager of Big Kanchipuram Cooperative Town Bank said, ” The bench put the next date of hearing on 13th October 2019. The RBI representative apprised the court that the ordinance is in the interest of depositors. The Court has also asked the Union of India to respond on the matter in two weeks”, he informed on the phone.

It bears recall that prior to this hearing held on 20 July 2020 the court did not grant any interim relief to the two cooperative banks. The cooperative banks had demanded a stay on operations of the provisions of the ordinance that empowers RBI to deal with incorporation, regulation and winding up of cooperative banks too.

Earlier, Opposing the arguments, senior counsel A L Somayaji, representing the Reserve Bank of India, contended that a cooperative society might be a state subject when it does other activities. The ordinance has been passed only to bring the banks under the banking regulations and protect the interest of the public,” Somayaji said.

There are more than 1,500 UCBs in the country handling over Rs 7.27 trillion of loans, primarily provided to agriculturists and middle-class people.

Interestingly, the Banking Regulation (Amendment) Bill, 2020 was introduced in the Lok Sabha on Monday by Finance minister Nirmala Sitharaman.

Tags: Banking RegulationBanking Regulation ActBreakingChief JusticecooperativeMadras High CourtpetitionsrbiSenthilkumar Ramamoorthytamil naduUnion of India

You may also like...