Telangana HC bench maintains status quo on Mahesh Bank fracas

Rejects plea for RBI probe into alleged Rs 300 crore fraud

Hyderabad: Complaining against the Reserve Bank of India (RBI) as it was not responding to pleas for action against AP Mahesh Co-operative Bank for alleged fraud to the tune of Rs 300 crore, the Mahesh Bank Shareholders Welfare Association has approached Telangana High Court, seeking a direction to issue orders for a full-fledged probe into the bank affairs.

In a petition submitted to the court here on Saturday, the association stated that around Rs 300 crore of depositors’ money was siphoned off by six persons who were on the earlier board of directors. They mentioned that those six directors were re-elected in November and they have been holding posts of chairman, vice-chairman and managing director. They sought the court to direct RBI for a forensic audit into the bank’s transactions and to suspend the incumbent Board of Directors.

However, Justice Abhinand Kumar Shavili refused to issue interim orders. Recalling the earlier directions by a single judge of the High Court in a batch of petitions related to conduct of elections and allowing only administrative decisions for day to day activities, Justice Shavili said that the earlier orders were adequate.

He issued notices to the respondents in the petition to file the counter within three weeks.

( Source : Deccan Chronicle. )
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