RBI Plays Role In Shaping Economy, Courts Must Refrain From Delving Into Monetary Regulatory Framework Unless Probe Is Needed: Bombay HC
The Bombay High Court in a writ petition seeking investigation into alleged wrongdoings during demonetisation has said that RBI (Reserve Bank of India) plays an important role in shaping economy of our country and that Courts must refrain from delving into monetary regulatory framework unless there is a need for a probe by an independent agency.
The petitioner sought issuance of writ of mandamus or any other writ, order or direction to constitute an independent investigation body/agency before the court.
A Division Bench of Justice A.S. Gadkari and Justice Sharmila U. Deshmukh observed, “The demonetization policy was implemented in the year 2016 and the investigation which is sought as regards the discrepancy during that period and the period of one or two years thereafter is nothing but an after-effect of policy decision. … It cannot be disputed that the RBI plays an important role in shaping the economy of our country and the Courts should refrain from delving into the monetary regulatory framework unless it is shown to the satisfaction of the Court that there is a need for an investigation by an independent agency.”
The Bench held that neither the complaint, nor the submissions advanced points out commission of an offence to justify the formation of an independent agency.
Advocate Shashikant Chaudhari appeared on behalf of the petitioner while APP M.H. Mhatre and Advocate H.S. Venegaonkar appeared on behalf of the respondents.
In this case, the petition was filed to take immediate action against alleged wrongful activities and wrongful actions by the authorities during demonetisation. It was pleaded that the Governor of RBI and the Chief General Manager of RBI, in connivance with each other did not follow the proper procedure laid down by the rules and regulations and helped the undue beneficiary to get exchanged their unaccounted old currency notes of Rs. 500/- and Rs. 1,000/- during the demonetisation of the year 2016 with the help of National Bank for Agriculture and Rural Development.
It was pleaded that, initially the petitioner had filed a public interest litigation before the High Court raising the issue of illegal currency in circulation, which was dismissed against which review petition filed was also dismissed. It was pleaded that the said PIL was filed seeking direction of investigation in the offences committed by RBI and others. A complaint was addressed by the petitioner to the authorities, requesting investigation in this matter but as there was no response to the same, the petitioner was before the High Court.
The High Court after hearing the contentions of the counsel noted, “We find that the Petitioner has collated the information from the annual reports of RBI and the information received under RTI and have come with a case that the numerical figures mentioned therein reveals discrepancy. Neither the pleadings nor the complaint is supported by report of an independent financial expert demonstrating that the discrepancies points out to commission of offence so as to entail a detailed inquiry or investigation. We find that since the year 2015 the Petitioner has been persistently seeking an investigation into the statutory functioning of RBI alleging irregularities and illegalities.”
The Court said that it was expected that the petitioner would support the relief with cogent material and substantiate the allegations with reports of independent financial experts and that not being done, the petition is nothing but a fishing inquiry into what the petitioner perceives to be a scam based on various figures set out in the annual reports as well as the information given under the RTI.
“In our view, reliance cannot be placed on half baked information pleaded in the Petition and the complaint to direct an investigation in the statutory functioning of an institution like RBI. … We are not satisfied that the complaint of 2018 discloses commission of any offence or even any irregularity or illegality as contended. According to us, no criminality can be fastened upon the said Authorities for even an inquiry least for investigation”, further observed the Court.
The Court added that all that is put forward are mathematical calculations and no criminality is demonstrated, hence, the petition is frivolous.
Accordingly, the High Court dismissed the petition.
Cause Title- Manoranjan Santosh Roy v. Union of India & Ors. (Neutral Citation: 2023:BHC-AS:26495-DB)
