Hyderabad: The Telangana High Court issued a contempt notice to Reserve Bank of India (RBI) Governor Shaktikanta Das in a case filed by AP Mahesh Cooperative Urban Bank Shareholders Welfare Association.
Justice C.V. Bhaskar Reddy directed the RBI Governor to state by July 7, why contempt proceedings should not be initiated, given that the RBI had failed to appoint an officer to run the administration and day-to-day affairs of AP Mahesh Coop. Bank, as ordered by the Telangana High Court on April 24.
Justice C.V. Bhaskar Reddy of the Telangana High Court said that the officer could also take policy decisions in the interest of shareholders with the assistance of senior employees of the bank.
These orders were issued while dealing with interim applications filed by the bank’s shareholders, over a petition to direct the returning officer of the bank to exclude from consideration all votes cast by 1,800 gold loanees, whose names are included in the voters’ list.
However, the RBI has failed to comply with the order.
Previously, the High Court granted interim orders on January 8, 2021, directing newly-elected members or directors not to take policy decisions on the day-to-day administration of banks.
