Supreme Court Notice To RBI & CBI On ‘Fraud’ In High Volume Bank Loans

Bhubaneswar: The Supreme Court has issued notices to Reserve Bank of India (RBI) and Central Bureau of Investigation (CBI) on a petition on alleged fraud in a series of bank loans, according to an ANI report.

The apex court issued the notices on a plea filed by BJP leader Subramanian Swamy seeking CBI probe into the alleged role of a nominee director of RBI in bank loan fraud cases.

Swamy had approached the Supreme Court seeking probe against the RBI officials who were part of the banks’ high volume loans which later turned to be loan frauds or defaulters. In his petition, he pointed out that those RBI officials’ role has to be probed by the CBI for dereliction and failure to discharge their duties and role of their connivance with the bank loan frauds.

The petition listed out a series of loan frauds and many such cases pending investigation. The petition reiterated that all such loans are approved by the RBI officials in the Banks’ Boards and hence RBI officials must be probed in giving approval to these high-volume loans.

The petitioner maintained that the banks can’t disburse such high-volume loans without approval of RBI officials. He alleged that they have been in demonstrable active connivance and in grave violations of their statutory duties.