The Reserve Bank of India (RBI) on Monday moved to the Supreme Court searching for the switch of round two dozen petitions pending earlier than numerous excessive courts difficult the legality and validity of the Banking Regulation (Amendment) Act 2020 and the consequential round that introduced all cooperative banks below the market regulator’s supervision.
A Bench led by Chief Justice NV Ramana whereas searching for a response from all of the petitioners refused to remain the proceedings pending earlier than numerous excessive courts of Bombay, Madras, Kerala, Karnataka, Chhatisgarh, Rajasthan, Uttrakhand, Punjab and Haryana, Allahabad, Andhra Pradesh, Madhya Pradesh, and so on.
While the CJI informed the central financial institution counsel that it supposed to switch all of the petitions to the Bombay High courtroom, the place the RBI headquarters can be situated, the counsel insisted that the case must be heard by the apex courtroom itself.
Senior counsel Rakesh Dwivedi and counsel Liz Mathews, showing for RBI, argued that the ordinance was handed solely to carry the banks below the banking rules and defend the curiosity of the general public. They mentioned the matter wants speedy consideration in any other case the “financial system would become unworkable.”
RBI has sought switch of all of the petitions to the SC as all of them cope with the legality of the Amendment Act by which the provisions regarding appointments of the board of administrators and CEO/MD had been prolonged to co-operative banks.
“Though the co-operative banks have been incorporated under the different state Co-operative Societies Acts, the common cause involved for filing all these writ petitions is challenging the constitutionality of the Amendment Act and the consequential Circular issued by RBI. Therefore, transfer of these will prevent multiplicity of proceedings and will also prevent inconsistency in decisions by the HCs,” RBI mentioned in its switch petition earlier than the HC.
Moreover, it’s important that there was no contradictory or inconsistent judgment handed by the totally different HCs on the exact same situation, Mattews mentioned, including such inconsistent instructions was prone to hamper the efficient implementation of the Amendment Act and the RBI round of June 25, 2021.
Various petitions together with these filed by two century-old cooperative banks, Big Kanchipuram Cooperative Town Bank and Velur Cooperative Urban Bank, had argued that the ordinance handled the issues which had been inside the unique area of the state listing, List II of Schedule VII of the Constitution, over which Parliament had no legislative competence.
The market regulator additionally added that given the continued pandemic it has turn out to be all of the tougher for RBI and its counsel to conduct proceedings in numerous HCs particularly when the problems concerned in all of the proceedings are the identical or related.
Source: www.financialexpress.com”