Citizens' Issues
Sahara case: Justice Khehar recuses himself from hearing

Justice Radhakrishnan, who retired on 14th May, has gone on record saying that the bench was under immense pressure in the Sahara case

In a sudden twist in the Sahara Group case, Justice JS Khehar from the Supreme Court has recused himself from hearing the matter following which a new bench has been constituted.


In a release, Rakesh Sharma, Deputy Registrar of the Supreme Court said, a “communication dated 6 May 2014 received from Justice JS Khehar was placed before the Chief Justice of India on 7th May. On 7th May itself, the CJI has been pleased to constitute another bench to hear the matter relating to Sahara Group...”


The release, read out by the official at a press conference in New Delhi, said that Justice Khehar had written a letter the day when he and Justice KS Radhakrishnan decided a petition filed by Sahara Group chief Subrata Roy.


Justice Radhakrishnan, who retired on 14th May has gone on record saying that the bench was under immense pressure in the Sahara case.


The official from the apex court, however, did not disclose the details of the new bench, which will now hear the petitions relating to Sahara Group.


The bench of justices KS Radhakrishnan and JS Khehar in its 6th May judgement had upheld its order jailing Subrata Roy and rejected his claim that rules of natural justice were not followed in the case.


The 65-year-old Roy, who has been in jail since 4th March for non-refund of over Rs20,000 crore to depositors, was asked by the court to make a fresh proposal for paying Rs10,000 crore to get bail.


The Court had passed the order on a petition filed by Roy challenging the constitutional validity of its order passed on 4th March by which he was sent to jail for not complying with its order to deposit around Rs20,000 crore of investors money with SEBI.


The bench in a strongly-worded judgement had come down heavily on the Group for “systematically” frustrating and flouting all its orders with impunity on refunding investors’ money.


It had said the Group “adopted a demeanour of defiance constituting a rebellious behaviour, not amenable to the rule of law” and justified its decision to send Roy along with two promoters of two Sahara companies to jail.




2 years ago


Why didn't Justice Radhakrishnan take contempt of Court proceedings against the persons who pressured him in Sahara Case?


Nagesh Kini

In Reply to MOHAN 2 years ago

Can he not initiate proceedings even now?

Nayak Panel report gives new opportunity for banking reforms

The Nayak Panel report is yet another opportunity for the Indian government to dispose of its holdings on state-run banks and make them practically free of its control. This is also a golden opportunity for RBI to consider if applicants for the new bank licence can be offered first direct investment in these banks

A panel of experts headed by PJ Nayak, the former chairman of Axis Bank set up to examine and recommend how these institutions can function more effectively, without much hindrance, submitted its report, which, Reserve Bank of India (RBI) governor Dr Raghuram Rajan has called as "candid".This panel looked into the working of 26 public sector banks (PSBs), and the report says that these institutions "suffered due to several externally imposed constraints, like dual regulation by RBI and the Finance Ministry" besides external vigilance by agencies such as Central Vigillance Commission (CVC) and Comptroller and Auditor General (CAG), among others.

The recommendations made by this Panel may have far reaching implications, such as reduction of government holdings to less than 50%, including certain executive measures, and eliminate the constraints, if these were accepted and implemented. The Panel report says that it would be necessary to repeal the Bank Nationalization Acts of 1970 and 1980 together with SBI Act and SBI (Subsidiary Banks) Act. In fact, it suggests that all Banks should be incorporated under the Companies Act and a Bank Investment company should be established where the government holdings in all the banks should be transferred. This committee is critical of Bank Boards, including the selection of directors, which is "likely" to be compromised.

Further, it says that the solution to the problems lie with the need to radical reforms being implemented by the government, not on a piece-meal basis and non substantive reforms, warning that "the fiscal cost of inadequate reforms will be steep".

Additionally, the Panel recomends that the present holding restriction of 5% be replaced by a new category of investors, to be termed as "authorized bank investors" who should be permitted a 20% equity stake without approval and a 15% limitation if it has a seat on the Bank board. Rest of the financial investors should be permitted upto 10%, according to the report.

The RBI governor is reported to have said that as the Nayak Panel report has a number of suggestions it has to be taken as a whole and then examined, debated and considered.

In studying this issue briefly, we may mention, that in the early part of our Banking history, we had the presence of five scheduled banks, known as 'the Big Five' in the financial world. But in the past few decades, many things have happened, after the nationalisation and continuous developments taking place in this sector.

Recently, it may be recalled that as many as 26 applicants sought to obtain new banking licence and RBI, eventually, has issued to only two approvals, though, now, any institution desiring to obtain a banking licence may apply and obtain it, identifying the specific service or operations that they may wish to cater. RBI will consider such application on its merits.

In the last few weeks, working results and balance sheets have began to appear in the leading newspapers. Taken in random, the results of the following can be of interest to readers:

Serial No

Name of Bank

Paid up capital (Rs crore)

Reserves (Rs crore)


State bank of Hyderabad




State bank of Travancore




State bank of Mysore




Canara Bank




Syndicate Bank




Corporation Bank




Union Bank




Dena Bank




Bank of Maharashtra




Allahabad Bank




Bank of Baroda



Some of these may have non-performing assets (NPAs), but on the whole, they have healthy balance sheets and good reserves and are generally considered as blue chip institutions.

In light of the recommendations made by the Panel, headed by PJ Nayak, it would be interesting if the new Government can review and consider following radical approach:

a) bring down the government holdings, if necessary, over a 5 year span, to 26%

b) offer the balance of the government holdings, or at least a substantial part of it, to the "authorised bank investors"

c) the "authorized bank investors" to include the balance of the 23 applicants for the new bank licence, who were "unsuccessful" in their attempt

d) ensure that the Board of Directors are positions that need to be offered to those who have atleast 10-15 years actual banking or experience/knowledge of financial institutions (not as a resting place for a "cushy" job for retiring government officials, politicians and their friends and relatives)

e) the Panel's recommendation of "10% holdings" to all investors should include NRIs/OCIs

Such a move by RBI would be welcome change if the government at the Centre approves all

(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)



Kamla Srinivas

2 years ago

Though, the banks are loaded with NPA's,that does not mean that the banks require a major surgery.The Public Sector banks that includes even State bank of India & its subsidiaries operate in remote rural areas financing and educating the farmers.Whereas the, private sector banks donot operate in rural areas as their main focus is on profit.We cannot say that all private banks are in pink of health.we Know what happened to ICICI bank few years bank and also to Global Trust Bank.What the PSB's require immediately is that government should not interfere in the functioning,and also in appointments in PSB's.The entire control of PSB's should be left to RBI.The PSB's have well trained,educated,and committed staff.The mounting of NPA's should not be attributed solely to the PSB's.The Government of India is also partly responssible as they cater to all sections of society.The government of India should own a minimum of 51% in all PSB's. However, the GOI can reduce the holding where they have 80% and even 70% holdings in stages.If we require inclusive growth,the PSB's have to play a major role which cannot be done by private banks as they perform class banking. The PSB's does mass banking.

Nagesh Kini

2 years ago

Yes,in deed it really is 'candid'.
It ought to consider public comments and suggestions from those with long hands on exposure banking like retired executives as well as auditors.
My critique that follows says it all.

Are you ready for 'the D day' on 16th May?

Counting of votes will take place on Friday at 8am, which would decide the fate of nearly 8,000 candidates from 543 constituencies. By 11am trends would be available for the next Lok Sabha

Votes polled in the nine-phased Lok Sabha elections will be counted on Friday to decide who will form the next government. Election Commission said that the counting would be held at 989 counting centres and is likely to be completed by 5pm with the trends available by 11am.


By noon, a final picture could emerge on who would be the major players in the 16th Lok Sabha.


Nearly 8,000 candidates, including top guns Narendra Modi, Sonia Gandhi, Rahul Gandhi and Arvind Kejriwal were in the fray, in the largest-ever electoral exercise held in Indian history.


The exit polls have projected that Bharatiya Janata Party (BJP) will emerge as the single largest party.


The counting of votes will begin at 8am when the postal ballots will be counted. According to EC guidelines, half-and-hour after the postal ballots are counted, the process of counting votes from the electronic voting machines (EVMs) will begin.


The ‘ballot unit’ is switched on in the presence of senior poll officials and the counting agents of candidates and the result command keyed in to get results per machine.


These were the first Lok Sabha elections when the option of ‘none of the above’ or NOTA was introduced on the EVMs following Supreme Court directions to ensure secrecy of voters who use this option.


Before NOTA button was installed on EVMs, voters had to fill up form 49 ‘O’ at the polling station which compromised their identity.


Where a paper trail audit or ‘voter-verified paper audit trail’ (VVPAT) has been used, the counting agent can call for a count of the paper slips in the drop box attached to the voting machine, but a final count is taken by the returning officer.


Polling in all phases was by and large peaceful barring a few incidents by Maoists and some poll-related violence.


Lok Sabha elections 2014 witnessed the highest-ever turnout with 66.38 per cent of an estimated 814 million voters exercising their franchise — the highest ever in the history of general elections.


Once the results are declared, the names of the winning candidates will find mention in the gazette to be issued by the Election Commission.


The gazette notification will initiate the process to form the next Lok Sabha.


The campaign held in blistering heat in several parts of the country was replete with barbs by various political leaders.


During the high decibel campaign marked by vitriolic accusations, Modi constantly targeted Rahul as ‘shehzada’ and the UPA dispensation as the ‘mother-son’ government besides going after Sonia’s son-in-law Robert Vadra over alleged land deals.


He also hurled barbs at the UPA Government, saying it represented the ‘ABCD’ of corruption, referring to Adarsh, Bofors and coal scams. He also took a ‘RSVP’ jibe at the Nehru-Gandhi family, saying R stood for Rahul, S for Sonia, V for Vadra and P for Priyanka.


He often ridiculed his rival parties for having a one-point ‘Stop Modi’ agenda.


The BJP Prime Ministerial candidate also had his share of criticism with several leaders taking him on in connection with the 2002 post-Godhra riots in Gujarat.


The Trinamool Congress in West Bengal called Modi the “butcher’’ of Gujarat after he escalated his attack against Chief Minister Mamata Banerjee, saying there is no “poribartan” in the eastern state.


Taking the political battle to an all-time low, SP leader Azam Khan called Modi an elder brother of a “dog’s pup” while Union Minister Beni Prasad Verma of Congress dubbed the Gujarat Chief Minister as the “biggest goon” of RSS. Verma had also dubbed Modi as a “monster’’.


Sonia and Rahul put Modi in the crosshairs over alleged favours given to the Adani group in land deals and claimed that he favoured only select industrialists. Rahul hurled “balloon” and “toffee model” barbs at the BJP Prime Ministerial candidate.


The Congress also attacked Modi for constantly harping on Gujarat model of development, claiming there has been no development at all in the western state during his rule.


Priyanka was also brought into the campaign by the Congress towards the later stages and managed to energise the cadres in UP. But she confined her campaign to Amethi and Rae Bareli.




2 years ago

In the background you can almost hear . . . Vande Matram, Vande Matram.

MG Warrier

2 years ago

Thank you, Moneylife Digital Team...Appreciate the pains taken by you to bring in one place answers to several questions people(if any reader has objection, read I) wanted to ask, but did not ask for fear of getting 'exposed'.

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