It directed industrialist Anil Ambani to approach the Reserve Bank of India (RBI) over Union Bank of India’s decision to label his loan account as fraudulent.
A division bench of Justices Revati Mohite Dere and Neela Gokhale was hearing Ambani’s petition challenging Union Bank of India’s October 10, 2024 order, which he claimed was issued without granting him a hearing. His plea also stated that he was denied access to documents on which the bank had relied before taking the decision.
Expressing displeasure, the court remarked that it had repeatedly encountered cases where banks failed to follow RBI’s guidelines.
“There cannot be such cut, copy and paste orders. There has to be some application of mind. Ultimately, this is public money. We cannot have such orders passed in a casual manner. There has to be some mechanism put in place,” the bench said, PTI reported.
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It stressed that banks must adhere to RBI’s ‘master circulars’ and warned that such arbitrary orders would persist unless the central bank acted against erring officials.
“We feel this is being done deliberately. There has to be some checks and balances, otherwise this will go on,” the court added.
Senior counsel Venkatesh Dhond, representing RBI, informed the court that affected individuals could file an online complaint with the central bank if a bank’s order violated principles of natural justice. However, he clarified that RBI would only assess procedural adherence and not the merits of individual cases, PTI reported highlighted.
Accepting this submission, the court instructed Ambani to lodge a formal complaint with the RBI.
“Let the petitioner upload his complaint. Let us start with that,” the bench stated.
It also directed Union Bank of India to submit its affidavit responding to Ambani’s petition and scheduled the next hearing for March 13.
(With PTI inputs)
(Edited by : Sheersh Kapoor)
