Rajasthan High Court To Decide If Police Can Levy Fees On Banks For SARFAESI Possession Assistance

The Rajasthan High Court is set to examine whether the Police Department can levy charges on banks for providing police assistance to recover secured assets under Section 14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002. A Single Bench of Justice Sameer Jain on 6 July was hearing a petition filed by AU Small Finance Bank Ltd challenging the Rajasthan Police Department's levy of charges for providing police assistance in...

RBI's Bank Amalgamation Scheme Doesn't Override Landlord's Rights Under Delhi Rent Control Act: Supreme Court

The Supreme Court on Thursday held that a banking amalgamation carried out under a Reserve Bank of India scheme does not take away a landlord's right to seek eviction under the Delhi Rent Control Act where tenancy rights vest in another entity without the landlord's written consent. A bench of Justices Sanjay Karol and Nongmeikapam Kotiswar Singh held that the amalgamation of Hindustan Commercial Bank with Punjab National Bank did not prevent eviction after the tenancy rights vested in Punjab...

Civil Courts Can't Grant Interim Relief Against SARFAESI Proceedings Despite Suit Being Maintainable: Kerala High Court

The Kerala High Court has held that civil courts cannot grant interim injunctions to halt proceedings under the SARFAESI Act even where the underlying civil suit is maintainable. The ruling applies where the relief sought falls outside the jurisdiction of the Debt Recovery Tribunal. Justice S. Manu delivered the ruling while dismissing an appeal filed by Deepa George against an order of the III Additional Sub Court, Ernakulam refusing interim relief against Federal Bank. The court observed that...

Supreme Court Sets Aside Delhi HC Ruling That PNB-HCB Bank Merger Did Not Amount To Unlawful Subletting

The Supreme Court on Thursday allowed the appeal filed by British Motor Car Company (1934) Ltd against the Delhi High Court's judgment which had held that the statutory amalgamation of Hindustan Commercial Bank (HCB) with Punjab National Bank (PNB) did not amount to unlawful subletting under the Delhi Rent Control Act.The High Court had set aside the eviction order passed by the Rent Control Tribunal, holding that the transfer of tenancy rights to PNB pursuant to the statutory amalgamation of...

Suspension Of Fraud Classification Does Not Automatically Nullify Criminal Investigation: Telangana High Court

The Telangana High Court has held that suspension of a bank's administrative decision classifying a borrower's account as "fraud" does not prevent investigation into cognizable offences. The court observed that the CBI's jurisdiction to investigate cognizable offences does not derive its authority merely from the bank's administrative fraud classification. A bench of Justice Nagesh Bheemapaka dismissed a writ petition filed by Vivimed Labs Ltd and its Managing Director challenging the CBI's...

Bank's Failure To Inform Borrower Of Insurance Rejection Is Deficiency In Service: Chhattisgarh High Court

The Chhattisgarh High Court on 25 June held that a bank which facilitates insurance under a loan-linked group insurance scheme must inform the borrower of rejection of the insurance proposal, and failure to do so constitutes deficiency in service. A Bench of Justice Ravindra Kumar Agrawal dismissed a petition filed by State Bank of India under Article 227 of the Constitution and affirmed the orders passed by the District, State and National Consumer Commissions. He observed: “Once the...

RBI Not Bound To Hear Bank Board Before Supersession U/S 36AAA Banking Regulation Act: Kerala HC

The Kerala High Court on Friday, 3 July, held that the Reserve Bank of India (RBI) is not required to provide a prior hearing before superseding the board of directors of a co-operative bank under Section 36AAA of the Banking Regulation Act, 1949. However, it clarified that consultation with the State Government is mandatory before passing such an order. Justice M.A. Abdul Hakhim considered a plea filed by the former President of the Irinjalakuda Town Co-operative Bank, M.P. Jackson,...

Calcutta High Court Quashes SBI Fraud Classification Show Cause Notice Against Pincon Spirit Director

The Calcutta High Court has recently quashed the State Bank of India's December 2, 2025 show cause notice proposing to classify the loan account of Pincon Spirit Ltd. as fraud and proceed against its director, Monoranjan Roy. The court held that the notice was founded on an inconclusive forensic audit that had been conducted without access to the company's complete financial records. Justice Krishna Rao observed that the forensic auditor did not have the borrower's books and records while...

RBI Appoints Ravi Shankar As Executive Director To Head Statistics Department

The Reserve Bank of India (RBI) on Wednesday appointed Ravi Shankar as its new Executive Director with effect from July 1, 2026.According to the RBI, Shankar will oversee the Department of Statistics and Information Management in his new role as Executive Director. He had been serving as the Adviser-In-Charge of the department prior to his promotion. According to the press release, Shankar has over three decades of experience at the central bank, spanning across several areas, including...

Diluting RBI's NBFC Capital Requirements Could Have Impact On India's Financial System: Bombay High Court

The Bombay High Court recently observed that permitting dilution of the Reserve Bank of India's directions on the minimum Net Owned Fund (NOF) requirement in favour of a Non-Banking Financial Company with weak financial standing and low NOF could have repercussions on the country's financial system. It upheld the Reserve Bank of India's decision cancelling the company's Certificate of Registration after it failed to achieve the prescribed NOF by the stipulated deadline. A division bench of...

Delhi High Court Sets Aside Refund Order For Non-Refundable Processing Fee In Undisbursed Loan Case

The Delhi High Court has held that a borrower who has accepted a facility letter expressly stipulating that the processing fee is non-refundable cannot subsequently seek its refund merely because the loan was never disbursed, particularly where the disbursal failed due to the borrower's inability to satisfy the conditions precedent.Justice Neena Bansal Krishna allowed an appeal filed by Standard Chartered Bank and set aside the trial court's decree directing the bank to refund the processing fee...

Kerala High Court Dismisses Cholamandalam Appeal, Reiterates Threshold For Intra-Court Appeals

The Kerala High Court on 19 June dismissed a writ appeal filed by Cholamandalam Investment and Finance Company Limited after holding that a purely procedural interim order, which does not affect substantive rights or cause serious prejudice, cannot be appealed under Section 5(i) of the Kerala High Court Act, 1958. A Division Bench of Justices Anil K Narendran and Muralee Krishna S ruled that an intra-court appeal lies only against orders that substantially affect the rights or liabilities of...