Delhi HC asks govt, RBI to respond to Subramanian Swamy’s PIL

The Delhi High Court on Friday asked the government, the Reserve Bank of India (RBI), and the Securities Exchange Board of India (SEBI) to file responses to former Rajya Sabha MP Subramanian Swamy’s PIL seeking direction to form a committee consisting of experts to investigate the transfer of Yes Bank’s stressed assets to J.C. Flowers Asset Reconstruction Company. A division bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad also sought a response of Yes Bank and J.C. Flowers Asset Reconstruction Company along with others respondents in the matter. Senior Advocate Rajshekhar Rao along with Advocate Satya Sabharwal appeared for petitioner Subramanium Swamy. The plea also sought direction to the government, RBI, and SEBI to formulate proper and comprehensive guidelines in accordance with the recommendations of the committee in order to check any such future agreements/transactions and to regulate the arrangements entered into between Banks/NBFS or other financial institutions and Assets Reconstructions Companies. The plea also highlights the growing rot prevalent in the private banking sector, which has been further accelerated by the perpetual decay of corporate governance and ethical standards prevailing in the private banking industry and asset reconstruction industry.