High Court fiat to RBI on Amanath Bank

High Court fiat to RBI on Amanath Bank

The High Court of Karnataka on Monday directed the Reserve Bank of India to take up the process of transfer of assets and liabilities of Amanath Co-operative Bank to Canara Bank, at the earliest.

Assistant Solicitor General Kalyan Basavaraj in his memo to the Court submitted that the Union department of Finance had communicated that it had no objection for transfer of assets and liabilities of Amanath bank to Canara bank. “It is for the RBI to take action in this regard by following the Banking Regulation Act, 1949,” he said. Justice Patil directed  RBI to workout modalities to initiate the process.  

Former Union Minister C K Jaffer Sharief has approached the Court seeking CBI inquiry into alleged irregularities in Amanath Bank. The Association of Amanath Bank members has also moved the Court seeking the merger of the co-operative financial institution with Canara Bank.

Details sought

The High Court has directed the contractors of  metro rail project to file an affidavit by April 21 replying to the plight of labourers working for the project.

During the hearing of a petition by Samuel Satyasheelan, a division bench comprising Chief Justice D H Waghela took the contractors to task for the delay in filing their reply in the matter filed in 2012. “If you do not file the affidavit by next date of hearing, the concerned officer should have to appear before the Court,” it said.

The Court also sought details of utilisation of the labour cess collected by the BMRCL.