No proposal to set up special courts for bank fraud cases: Centre tells Lok Sabha

The Union government has said that there is currently no proposal under consideration to establish dedicated special courts for the expeditious trial and disposal of bank fraud cases across the country.

The response was given by Minister of State (Independent Charge) for Law and Justice Arjun Ram Meghwal in a written reply to a question in the Lok Sabha on Friday.

Members of Parliament GM Harish Balayogi and Lavu Sri Krishna Devarayalu had asked whether the government planned to set up special or fast-track courts to deal exclusively with bank fraud cases.

Replying to parts (a) to (f) of the question, the Minister stated that “no proposal for establishment of dedicated Special Courts for expeditious trial and disposal of bank fraud cases in any part of the country is currently under consideration of the Government of India.”

The government further clarified that existing laws do not mandate the creation of special courts specifically for bank fraud cases. As informed by the Ministry of Corporate Affairs, the Companies Act, 2013 does not contain any provision requiring the establishment of Special Courts exclusively to try cases relating to bank frauds.

In addition, the Department of Financial Services, after consulting other Ministries and Departments that administer laws dealing with bank frauds, has stated that those Acts also do not provide for the establishment of special courts for such cases.

In view of this position, the government indicated that no consultations, implementation timelines or impact assessments relating to dedicated bank fraud courts have been undertaken.

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