The Bombay High Court, Circuit Bench at Kolhapur, has observed that the impugned directions relating to the tenure of directors in cooperative banks were issued directly by the Reserve Bank of India (RBI), the authority empowered under the Banking Regulation Act, 1949.
A Division Bench of Justice M. S. Karnik and Justice Ajit B. Kadethankar made the observation while refusing to grant interim relief in a writ petition challenging the RBI’s directions affecting the eligibility of directors in cooperative bank elections following the 2025 amendment to the Act.
Distinguishing a Gujarat High Court decision relied upon by the petitioners, the Bench noted that in the present case the directions under challenge were issued by the RBI itself, whereas in the Gujarat matter the action had been taken by the election authority. The Court recorded that the RBI is empowered to ensure compliance with the provisions of the Banking Regulation Act.
Finding no prima facie illegality in the RBI’s action, the High Court declined to interfere at the interim stage and admitted the petition for final hearing.