IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT

JODHPUR

S.B. CIVIL WRIT PETITION N0.1190/2014

PETITIONER: v/ s RESPONDENT:

Trideep Raj Bhandari Reserve Bank of India & Ors.

I N D E X

S. No. PARTICULAR

1. Reply to the writ petition

2. I Affidavit in support of the reply I

3. Affidavit in support of documents -

Copy of the order dated 17.9.2013 of the Madras High Court in Writ Petition No.25961 of 2013 and M.P.No.1 of 2013 Master Circular RBIl2013-14/39 DNBS.PD.CC. No. 337/03.10.04.042/2013-14 dated July 1, 2013 issued by the Reserve

I Bank on 'Frauds - Future approach towards monitoring of frauds in NBFCs"

COUNSEL FOR THE RESPONDENTS

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(A) That through the instant writ petition, the petitioner

made the following prayers:-

i) Allow the above wri t petition of the petitioner.

ii) Issue an appropriate writ, direction or order directing the respondent officers of the Reserve Bank of India or such other responsible persons t o immediately take steps as permitted under Chapter V of the RBI Act.

iii) Issue an appropriate writ, direction or order directing the Reserve Bank of India t o set up a committee to fix and fasten responsibility upon those officers of the RBI who failed in detecting, diagnosing and acting in t ime to prevent this siphoning of f of crores of rupees of the company and its shareholders.

- iv) Any other appropriate order or directions

which are deemed just and proper by this Hon'ble Court may also be passed in favour of the humble petitioner and in the interest of justice.

v) Cost of the wri t petition be allowed in favour of the humble petitioner"

As per the contents of the wri t petition, it is

apparent that the petitioner prays for initiating

proceedings in terms of Chapter-V of the Reserve Bank

of India Act, 1934 (hereafter referred as "the RBI Act")

on the basis of proceedings already initiated by the

respondent Bank against First Leasing Company of

India Limited (hereinafter referred as "the Company").

It would be pertinent t o submit here that the Company

. . . . . . , . : . . .., ;;;;;!.

i n quest i o n&s&re.g~~ - s ~ ~ ~ ~ ~ e ~ ~ ; a , ~ ~ d ~ ~ : ~ c o ; ~ ~ : o ~ r i a ~ f ~ e d irliC:t$e:n n a i in

' ' '~ r>-.-

~he.:.,Stat,e.:.'of.'Tam:il~~~Nadu'lfi3Phe Company is having i ts

registered office . in Chennai. The respondent Bank

conducted an inspection of the Company under Section

45N of the RBI Act which revealed falsification of

accounts by the Company and the respondent Bank

immediately proceeded in accordance with law in the . , said matter. ~ ~ t : ; ; ! . ~ i s ~ , ; ~ ~ ~ m i < ~ e d ' . that fa~sifi&tion of

ha~cco.unfs:-by the Gompany,.the subsequent inspection of

&the~Bo.o.ksi~of Accounts o f the Company as done by the

bres:pondent 7 ) Bank and. :' so. a l s o t h e consequential

~cprrespond,ence ,,, ~ . , . .. .., ~, with the. C.ompany did not take place -

&w.i.thi,n-the .. . .,,. . . . . . territorial jurisdiction of this Hon'ble Court.

$i+ll;.:th.e . c . ~ . . i . ... !.! -. :.. .. .corresp~~dences.: in, . .. . . , . . . the- said matter are done by

athe, Ch,en?.ai,. Regignal . . . Office , . , o f ,,. : , . . t h e . Reserve: Ban:k or the

Ceptr:al . . . ,,.~ .., , .Office of the Reserv,e.,Bank ,.. . at .Mumb.a.i~:~~~Section:

658~~'~,:: lof. :~-thei; .~~1,,,~ct ,._; deals;:',.with . . . t h e offences by

~compani.es..a.nd :Ex.pIanati.on;.l. ;.to-.,the' said Section very

:cle:ar IP.I,.;a nd: ; i n: .i.s,p,ecif ic,:,worcJs sa:y.s . that. ;any ;.::offence .3

&~u:@isha.ble.,un:der,:,tpe . _ R.BI~Act,,i~,h~aIl~~be~.deey:e,d~;to.have,~ !~:.~ ... . ,- cL..aJ.:

~6;een:-:;.com'mitt ed.. . . a t . .the:.~~pl;ace;:wh,e.re, . . , . - - .,the,,,:.>~e.gistered

i.o.ffice.:.o.r :the principal. pIa.ce?.of b.us.ines:s,~ ::as,.:the case

,may be, in India,,.of the.co.mpany i s situated.,By virtue &.,. . . .

of Explanation 2, 'a company" as referred in Section

58-C includes non-banking institution as well. Hence