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Allahabad High Court issues notice to RBI seeking CBI inquiry against Indian Medcantile co-perative bank

The Lucknow Bench of the Allahabad High Court has issued notice to the Reserve Bank of India on a petition seeking a CBI inquiry against the Indian Mercantile Co-operative Bank.

The Division Bench of Justice Attau Rahman Masoodi and Justice Om Prakash Shukla passed this order while hearing a PIL filed by Sakshi.

The petitioner has been an employee in the Indian Mercantile Co-operative Bank.

Ashok Pandey, counsel for the petitioner said that the Indian Mercantile Co-operative Bank gave a loan of Rs 10 crore despite the ban.

He alleged that the bank was involved in fraud to the tune of Rs 64 crore and was also involved in money laundering activities.

“The credentials of a whistle blower in a public interest litigation have to be viewed as per the settlement guidelines applicable in this behalf. The objection is left open.

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The Reserve Bank of India is a repository of faith in so far as the interest of investors in the banking institutions is concerned. It would be necessary to have a response from the Reserve Bank of India for the measures which may have been taken to safeguard the interest of investors and account holders”, the Court observed.

The Court issued notice to the Reserve Bank of India and directed the list alongwith service report in third week of November, 2022 as fresh.

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