The Delhi High Court on Friday sought responses from Central government Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) as well as Yes Bank and Assent Reconstruction Company (ARC) JC Flowers on a plea by BJP leader Subramanian Swamy alleging fraud in the transaction between Yes Bank and JC Flowers for the sale of the bank's Non-Performing Assets (NPAs)..A division bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad did not issue formal notice on the plea but asked the respondents to file their replies to the plea seeking a probe into the deal by a court-appointed expert committee. .Yes Bank and JC Flowers had entered into an agreement for the sale of the bank's NPAs in July 2022. The private sector lender transferred stressed assets worth ₹48,000 crore to JC Flowers under the 15:85 structure for ₹11,183 crore. As per Swamy's plea, this transfer is linked to another deal in which Yes Bank had obtained a stake of up to 19.9% in the JC Flowers. .Through his petition, Swamy has sought direction to form a committee consisting of experts to investigate "into the transaction entered into between Yes Bank and JC Flowers (respondents). Swamy has also sought a direction to Central government to ask for the report on the specific details from the competent officers of RBI and SEBI regarding the violation of the rules and regulations by the respondents. Swamy has also prayed for a direction to the government authorities to formulate proper and comprehensive guidelines in accordance with the recommendations of the committee to check any such future agreements/transactions and to regulate the arrangements entered into between Banks/NBFC’s or other financial institutions and ARC..The plea argued that there is a growing rot prevalent in private banking sector, which has been further accelerated by perpetual decay of corporate governance and ethical standards prevailing in private banking industry and asset reconstruction industry."This is a growing case of concern as there is an apparent conflict of interest between the functioning of banks & ARCs. The situation is further complicated when motivated and malafide transactions between the two are allowed to stand as the regulator (RBI), fails to act & enforce its own guidelines causing significant loss of public monies," it said.The plea further argued that concerning a scheduled commercial bank holding a significant amount of public funds, has prioritized its own interests over the well-being of its customers and the country as a whole. "The transfer of a distressed asset portfolio worth ₹48,000 crores to Respondent No.5 through these transactions appears to be a blatant attempt to circumvent laws and regulations in favor of Respondent No.5. This only undermines the trust of the public in the banking sector but also jeopardizes the economic stability of the country.".Senior Advocate Rajshekhar Rao appeared for Swamy. He was assisted by advocate Satya Sabharwal.