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.”
Source: Barandbench
