Supreme Court sent notice to RBI and CBI, Subramanian Swamy filed petition in bank loan fraud case
Supreme Court issues notice to RBI and CBI on a petition related to bank loan fraud. The court has issued notice on Subramanian Swamy's plea seeking a CBI inquiry into the role of a designated director of RBI in bank loan fraud cases.
Muskan 
The Supreme Court, while hearing a petition by BJP leader Subramanian Swamy, has issued notices to the Reserve Bank of India (RBI) and the Central Bureau of Investigation (CBI). His petition is related to bank loan fraud. Subramanian Swamy had filed a petition in the Supreme Court seeking a CBI inquiry into the role of RBI's designated director in bank loan fraud cases.
Swamy had approached the Supreme Court seeking a probe against RBI officials who were part of banks' large-volume loans that later became loan frauds or defaulters. In his plea, he said that the role of those RBI officials should be probed by the CBI for their failure to discharge their duties and their complicity in bank loan fraud.
It has been said in the petition that the investigation of many such cases related to loan fraud is pending. It has been reiterated in the petition that all such loans are approved by RBI officials on the board of banks and hence the RBI officials should be scrutinized for sanctioning these large-volume loans.
The petitioner submitted that banks cannot disburse such large amounts of loans without the approval of RBI officials. They alleged that they were clearly in active collusion and in serious breach of their statutory duties.
