GENERAL3 Sept 2026
Sandeep S. Ghandat vs Reserve Bank Of India on 3 September, 2026
The fight is about RBI's power to remove a co-operative bank board. Appeals challenge a Bombay High Court order that upheld RBI's decision to supersede the Abhyudaya Co-operative Bank board and put an administrator in charge. The core question: does democratic governance of co-operative societies limit RBI under the Banking Regulation Act? This decision affects every multi-state co-operative bank, its members, and depositors.
Key Statutory Highlights
- The appeals target the Bombay High Court's 18.11.2024 judgment that dismissed writ petitions against RBI's 24.11.2023 order.
- The 2023 RBI order superseded Abhyudaya Co-operative Bank's Board of Directors and appointed an Administrator.
- The legal issue is how the constitutional mandate of democratic governance of co-operative societies limits RBI's supersession powers under the Banking Regulation Act, 1949.
Actionable Advice for Taxpayers / Founders:If your bank's board faces RBI action, consult a lawyer to understand your rights during supersession and how the ongoing appeals could affect you.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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