Be a PRO & get up to 50% off on select brands. Explore Now
you are here: HomeNewsIndia

Subramanian Swamy moves SC seeking CBI probe into RBI officials' role in bank scams

"These scams have been caused due to the active connivance of the RBI officials which has failed to prevent these scams despite being vested with substantial powers under various legislations," Swamy said in the plea.

February 07, 2021 / 07:30 PM IST
Subramanian Swamy.

Subramanian Swamy.

Senior BJP leader Subramanian Swamy has moved a plea before the Supreme Court, seeking a high-level probe against officials of the Reserve Bank of India (RBI) for their alleged involvement in bank scams.

The inquiry should be conducted by the Central Bureau of Investigation (CBI) or any other competent authority, demanded the public interest litigation (PIL) filed through advocates M R Venkatesh and Satyapaul Sabharwal, Business Standard reported.

The petition points out before the court that several bank frauds emerged over the past few years, but no official of the RBI was held accountable for failing to detect the scams.

"These scams have been caused due to the active connivance of RBI officials which has failed to prevent these scams despite being vested with substantial powers under various legislations," Swamy said in the plea.

The scandals of Kingfisher, Bank of Maharashtra, Uttar Pradesh-private sugar organisation, Nirav Modi-Punjab National Bank, Lakshmi Vilas Bank, IL&FS, PMC Bank, YES Bank, First Leasing are among the cases of financial fraudery that have come to the fore in recent years, the petition said.

Close

The petition added that most of the prime accused - including wilful defaulters and officials of the bank which lended the loans - were identified in the above scandals, but the role of RBI officials did not come under the scanner.

"...no officer of RBI 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 Rs 3 lakh crore (Rs three trillion)," the PIL said.

The petitioner, through an RTI, also sought information from the RBI on the list of bank frauds aggregating to Rs 100 crore or more, Business Standard reported. The central bank was asked to release information from the RBI Central Fraud Registry from January 1, 2015 onwards.
Moneycontrol News
first published: Feb 7, 2021 07:30 pm

stay updated

Get Daily News on your Browser
Sections