On Monday Telangana High Court issued a contempt of court notice to RBI- Reserve Bank of India Governor Shaktikanta Das in connection with Mahesh Bank loan fraud case.
In this case, top officials were accused of illegal disbursement of the loans and other irregularities. On 24th April the bank’ shareholders’ welfare association filed a contempt of court case against RBI’s failure to appoint the officer to manage administration and day to day affairs of AP Mahesh Bank as directed by the Telangana HC.
Justice CV Bhaskar Reddy of the Telangana High Court ordered the RBI Governor to tell why contempt of court action should not be taken by July 7.
Justice CV Bhaskar Reddy issued a contempt notice against Reserve Bank of India Governor Shaktikanta Das for wilful inactivity on an order dated 24th April, 2013.
In the writ petitions, the court was asked to declare that Circular No. 105 issued by AP Mahesh Bank on 10th September, 2018 is arbitrary, void and contrary to the provisions of Section 11 of Co-operative Societies Act, 2002 and Clause 4 of Mahesh Bank Bylaws. On April 24, Justice Bhaskar Reddy ordered RBI to appoint an administrator until the dispute between the two factions in the bank is resolved as the day-to-day operations of the bank are also affected.