Former directors of Maharashtra based Janata Sahakari Bank, Dharashiv have approached the Bombay High Court, Aurangabad Bench, challenging the actions that led to their removal from the bank’s board following a communication issued by the Reserve Bank of India (RBI) regarding directors’ tenure under the Banking Regulation Act, 1949.
According to the writ petitions, RBI, through a communication dated June 1, 2026, informed the bank that certain directors were allegedly continuing on the board beyond the tenure permitted under Section 10A(2A)(i) read with Section 56 of the Banking Regulation Act. Subsequently, the bank issued orders on June 2, 2026 removing the concerned directors from the board.
The petitions have been filed by former directors Vaijnath Gyandev Shinde, Vishwas Jagdevrao Shinde and Tanaji Nanasaheb Chavan, who have challenged both the RBI communication and the consequential action taken by the bank.
The petitioners contend that although the Banking Laws (Amendment) Act, 2025 increased the maximum continuous tenure of directors from eight years to ten years, the law does not provide a specific adjudicatory mechanism, competent authority or procedural framework for determining whether a director has incurred disqualification on account of tenure limits.
They have further argued that RBI lacked jurisdiction to adjudicate disputed tenure-related issues and issue directions resulting in their removal.
The petitioners have sought quashing of the RBI communication dated June 1, 2026 and the consequential orders issued by the bank. The matter is currently pending before the Bombay High Court. The allegations and legal contentions raised in the petitions are yet to be adjudicated by the Court
