VISUAL SECURAS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The writ petitioners are engaged in the business of cash transportation activities under the respondent No.5, namely, the ICICI Bank Limited. The contract of the writ petitioners come to an end on March 31, 2019. In the meantime, during the subsistence of the contract of the writ petitioners as Private Security Agencies, the Reserve Bank of India published a policy dated April 6, 2018, bearing Circular No.RBI/2017-18/152 DCM(Plg) No.3563/10.25.07/2017-18 prescribing certain eligibility criteria to be followed by all the banks and financial institutions while awarding contracts to the Private Security Services Agencies for cash transportation activities. The relevant eligibility criteria, by which the writ petitioners are aggrieved, states as follows:-

(2.) It appears from the letter of the General Manager, Reserve Bank of India dated April 6, 2018 written to the Chairman/Managing Director/Chief Executive Officer, Public Sector Banks/Private Sector Banks/Foreign Banks/Regional Rural Banks/Primary(Urban) Co-operative Banks/State Co-operative Banks /District Central Co-operative Banks that the said criterion along with the other criteria have been prescribed in terms of paragraph-11 of the Statement on Developmental and Regulatory Policies dated April 5, 2018. According to the said letter, it was decided by the Reserve Bank of India that the banks should put in place certain minimum standards in their arrangements with the service providers for cash management related activities. However, in the said letter, it was also directed that as the cash held with the service providers and their sub-contractors continue to remain the property of the banks and the banks are liable for all associated risks, the banks should put in place appropriate Business Continuity Plan approved by their boards to deal with any related contingencies.

(3.) Paragraph-11 of the Statement on Developmental and Regulatory Policies dated April 5, 2018 states as follows:-