ASHOKKUMAR KISHANCHAND JAGOTA Vs. UNION OF INDIA

JUDGEMENT

(1.) This writ -petition is filed by way of Public Interest Litigation under Article 226 of the Constitution of India, seeking the following prayers:

(2.) It is the case of the petitioner that this petition is filed for the benefit of public at large who have been affected on account of financial advances granted by Public Sector Banks to big corporate companies, which resulted into non -implementation of several schemes of the Reserve Bank of India on account of fund scarcity with the banks. In the petition, it is stated that the respondent nos. 6 to 9 companies have been financed by several Public Sector Banks to the tune of crores of rupees and the said companies have diverted their funds against established norms to foreign entities and established their businesses overseas. It is stated that the moneys which have been given by the Indian banks have been taken in the foreign land duping the public at large. It is further stated that the respondent nos. 6 to 9 companies are controlled by Sandesara Group of Companies in Vadodara and despite there being several defaults, no action is being taken by any agency including Reserve Bank of India and the Enforcement Directorate. The petitioner has placed on record copy of the list of defaults of top 50 corporates, published by All India Banks Employees Union (AIBEU) in which respondent nos. 6 to 9 companies are included. It is averred in the petition that there are total dues of more than Rs.2500 crores from respondent nos. 6 to 9, thus, it is affecting the national exchequer as well as the GDP.

(3.) When the matter has come up for admission, this Court directed the learned counsel for the petitioner to serve advance copy on Shri Amar N. Bhatt, learned counsel appearing on behalf of the Reserve Bank of India. When the matter was called for hearing on 12.7.2016, Shri Amar Bhatt submitted that similar such matter seeking exhaustive reliefs is pending consideration before the Hon'ble Supreme Court. The learned counsel placed on record the interim orders passed by the Hon'ble Supreme Court on 16.2.2016 and 12.4.2016 in the case of Center for Public Interest Litigation vs. Housing & Urban Development Corp.& Ors in Writ Petition (Civil) No. 573/2003. Interim order dated 16.2.2016 passed by the Hon'ble Supreme Court in the above said petition reads as under: