PIL filed in Delhi High Court seeking probe into Hinduja Group as promoters of IndusInd Bank

A Public Interest Litigation (PIL) has been filed in the Delhi High Court seeking investigation by a Special Investigation Team (SIT) into the ‘fit and proper’ status of Hindujas as promoters of IndusInd Bank..The plea also sought a direction to the Reserve Bank of India (RBI) to disallow the policy of raising stake holding of private equity by promoters to 26% in private banks where the promoters of the same are tainted with credentials of criminality or financial fraud..The present petition is the second case to be filed by advocate and tax consultant Mahek Maheshwari. The Delhi High Court while hearing the matter last month had directed the RBI to examine the petition treating it as a representation and communicate the decision within either weeks..Maheshwari has now argued that the RBI sent an e-mail to him registering a complaint, but shockingly, it was against Union Bank of India.The complaint was later disposed of on the grounds that the matter is sub judice before the Delhi High Court.“RBI intimated the petitioner through email about the closure of the complaint assigning reason that “the matter is already sub-judice before Hon’ble Delhi High Court” which is not in the present case. It just callously replied without going through the Petition. It amazed the petitioner how irresponsibly RBI Acted,” the plea stated..He has said that an Internal Working Group (IWG) was constituted by RBI on June 12 2020 to review the extant guidelines on ownership and corporate structure for Indian private sector Banks.Report of this was submitted to RBI which published as a press release on 26th November 2021 accepting 21 recommendations out of 33 made by IWG. Remaining recommendations apart from 21 are under consideration, the plea stated.The plea has argued that these recommendations provide unbridled power to private promoters especially the corporate houses to play with depositors’ money by way of controlling the bank as the regulatory mechanism is on papers by RBI & not on execution platform.“Using these recommendations Indusind bank promoters hinduja Brothers who are already possessive of criminal track record want to increase stake in Indusind Bank to 26% by which they will launder huge amounts of public money. Already hinduja brothers banking license was cancelled in foreign countries, also Indusind bank in itself is not free from fiascos,” it was submitted. .The plea also highlighted that the increase of the promoters' holding in IndusInd Bank suggested more siphoning, money laundering and playing with public money. It was submitted that the promoters were not Indian citizens, so they felt more secure from Indian law as they were in foreign destinations.“If these recommendations are implemented by promoters of Private Banks then surely the Life of Depositors will be vulnerable in terms of their trade, profession & day to day needs which will be surely the violation of Article 14, 19(1)(g) & 21of Constitution of India as it affects fundamental rights of Depositors(Public) at large,” the petition said.

PIL filed in Delhi High Court seeking probe into Hinduja Group as promoters of IndusInd Bank

Prashant Jha

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