HC dismisses PIL seeking CBI probe into rise in NPAs of banks

MUMBAI: The Bombay High Court today dismissed a public interest litigation seeking a CBI probe into alleged fraudulent grant of loans and consequent rise in nationalised bank's non-performing assets.

The bench, headed by Chief Justice Mohit Shah, dismissed the PIL as the petitioner and respondents were not present.

The PIL, filed by activist Ketan Tirodkar, said the NPAs of nationalised banks jumped from Rs 455 crore in March 2008 to Rs 9,190 crore in March 2012 as per the data obtained under the Right to Information Act.

Tirodkar further said that several banks had reported to CBI at least 140 cases of fraud in loans between 2008 to 2012.

The nationalised banks have not complied with the Banking Regulation Act which requires that periodically annual reports be submitted to the apex bank. Had the reports been submitted, the fraud would have come to light, the PIL said.

This was done to shield the beneficiaries of such bad loans who are in league with bank officials, it alleged.