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Home  » Business » RBI Governor faces contempt rap

RBI Governor faces contempt rap

Source: PTI
May 24, 2005 14:43 IST
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The Rajasthan high court has issued contempt notices to Reserve Bank of India Governor Y V Reddy and three State Bank of India officials for failing to comply with a court order.

Hearing a contempt petition filed by Mahendra Singh Rathore, a member of the Bikaner royal family, Justice K S Rathore issued the contempt notices to Reddy, SBI's Jaipur regional manager K N Tripathi and two other bank officials for not complying with earlier court order, which had directed for payment on a seven-decade-old security bond.

As per the petition, Rathore's grandmother had deposited a sum of Rs 28,300 as security bond in the then Imperial Bank of India which later became State Bank of India.

The SBI branch in Ajmer refused to make the payment on the bond stating the matter was very old, so Rathore moved the court.

The high court in 2004 had decided the dispute in favour of Rathore and directed the bank to make the payment within two months. Rathore moved the contempt petition after the bank failed to comply with the court's directive.

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