Court Dismisses Allegations Against Banks in Financial Impropriety Case

The Delhi High Court has reinforced the autonomy of banks, stating that they cannot be held judicially accountable for their financial decisions unless compelling evidence of impropriety is provided. This ruling emphasizes the significance of protecting banks from unfounded claims of misconduct.

A bench comprising Justices C Hari Shankar and Ajay Digpaul dismissed a PIL seeking a CBI probe into allegations of undervaluation during one-time settlement deals between Asian Hotels (North) Private Limited and public sector banks Punjab National Bank and Bank of Maharashtra. The PIL, filed by NGO Infrastructure Watchdog, was deemed speculative and unsupported by concrete evidence.

The court further cautioned against the misuse of public interest litigations, highlighting the potential for blackmail under the guise of public welfare. By rejecting the petition, the court aims to prevent jeopardizing the banking sector and discouraging legitimate commercial transactions.