Supreme Court Issues Notice On Dr. Swamy's Plea For Probe Into Role Of RBI Officials In Bank Scams

The Supreme Court today agreed to examine BJP leader Dr Subramanian Swamy's plea seeking a probe into the alleged role of Reserve Bank of India (RBI) officials in various banking scams.

A Bench of Justice B R Gavai and Justice B V Nagarathna issued notices to the Central Bureau of Investigation and Reserve Bank of India and sought their replies on Swamy's plea.

"We'll consider. Issue notice," the Bench said.

Swamy has alleged that the involvement of RBI officials in scams involving various entities such as Kingfisher, Bank of Maharashtra and Yes Bank had not been probed.

"The number and value of banking frauds detected by RBI and other agencies during the last couple of years categorically shows 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 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", he has said in his plea.

The plea also alleged that RBI officials had acted in demonstrable active connivance in direct violation of statutes, including the Reserve Bank of India Act, Banking Regulation Act and State Bank of India Act.

With PTI inputs