SAJJAN SINGH BHATI Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) IN this writ petition filed in public interest, the petitioner, an Advocate, has brought to the notice of the Court large scale banking business done by various Cooperative Societies registered under the Multi -State Cooperative Societies Act, 2002 and the Cooperative Societies registered under the Rajasthan Cooperative Societies Act, 2001 without taking out licence under Section 22, of the Banking Regulation Act, 1949.

(2.) IT is alleged that Sanjivani Credit Cooperative Society Ltd. - respondent No. 9 is a Multi -State Cooperative Society and that respondents Nos. 10, 11 and 12 are State Level Cooperative societies. They are not authorised to carry on banking business by accepting deposits and giving interest to the general public either by opening the accounts directly or after their spot enrolment for which these Cooperative Societies are also operating ATM facility without obtaining licence under the Banking Regulation Act, 1949.

(3.) A large number of documents have been filed including FIRs which clearly demonstrate and establish on record that respondents Nos. 9 to 12 are actively engaged in the banking business. They are accepting deposits by enrolling the persons as members and giving interest on such deposits. They are giving pass -books and also offering ATM cards. The petitioner has also annexed a large number of documents to show that amount is collected from the general public by way of deposit on the false promise of getting higher rate of interest, and also prizes to be given by lottery on which winners may be given cars, scooters, mobile phones or gold coins. The deposits are then diverted for private use and for illegal activities. It is alleged that the politicians in the State run these cooperative societies and are regularly opening branches of these cooperative societies commonly known and termed as Cooperative Banks.