Kerala Islamic Financial Body: Petition Adjourned to Sep

via published on June 3, 2010

The Reserve Bank of India was today asked by the Kerala High Court to file by September 7 its counter on a petition challenging an Islamic financial institution in the state on the lines of Islamic banks.

In its petition, RBI sought three-weeks time from the court to file the counter and said contentions raised by Janata Party chief Subramanian Swamy involves a policy decision to be taken by it, which is under consideration.

A division bench, comprising Chief Justice J Chalameswar and Justice P N Ravindran, granted RBI time till September 7 to file the counter.

Swamy, who was also present in court, agreed to have the matter deferred to September.

On January 5, the court had stayed the state government’s proposal to start an Islamic financial institution on a petition by Swamy and Hindu Aikya Vedi secretary R V Babu.

On April 8, the court, in an interim order, had directed the state government and its institutions not to participate financially or otherwise in the financial company.

“Kerala state and institutions controlled by it will desist from participating financially or otherwise with Al Barakah Financial company, state-owned Kerala state Industrial Development Corporation,” a division bench comprising Chalameswar and justice C N Ramachandran Nair said on the petition filed by the state, Al Barakah and KSIDC seeking to vacate the stay order.

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