The Madras High Court has given eight weeks' time to the Secretary of Department of Financial Services, Reserve Bank of India (RBI), markets regulator Securities and Exchange Board of India (SEBI) and Lakshmi Vilas Bank (LVB) to file their replies in a case where a minority shareholder of LVB approached the Madras High Court with a plea to direct RBI and SEBI to initiate appropriate legal...
The Madras High Court has given eight weeks' time to the Secretary of Department of Financial Services, Reserve Bank of India (RBI), markets regulator Securities and Exchange Board of India (SEBI) and Lakshmi Vilas Bank (LVB) to file their replies in a case where a minority shareholder of LVB approached the Madras High Court with a plea to direct RBI and SEBI to initiate appropriate legal action against the Bank.
The petitioner in his Public Interest Litigation (PIL) has prayed for appointment of an administrator and suspension of the Board with the intention of safeguarding the savings and investments made by public stakeholders in the Bank.
The petitioner R Subramanian in his affidavit, claims that he is a former officer of LVB, and a minority shareholder and depositor of the bank too. He had been an employee of the bank for 36 years and retired as a senior manager in 2013.
In the PIL, Subramanian has alleged large-scale mismanagement and misleading information/data to the general public and stakeholders, in violation of RBI and SEBI regulations, ultimately affecting the interest of members of the public who had made deposits in the bank or subscribed to its rights issue.