Chennai, Sep 30 (TIWN) A minority shareholder and a retired senior manager of the Lakshmi Vilas Bank (LVB) has moved the Madras High Court to direct the Central government, the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) to suspend the board of the private bank and appoint an administrator.

R. Subramanian pleaded that this action be taken to ensure the reserved savings and investments made by investing public/stakeholders in the bank are not misutilised, and prevent misleading statements by its management.  Admitting the matter, the court has given eight weeks time for the Department of Financial Services of the Union Finance Ministry, the RBI, the SEBI and the LVB to respond.  “Strangely, the nominees of the RBI on the LVB Board have not raised any concern or red flag despite the happenings in the bank,” Subramanian, 67, told IANS. 

In his petition, Subramanian, who was the General Secretary of the Lakshmi Vilas Bank Officers’ Association, and retired from the bank in 2013 as a senior manager, said that he had sent a representation to the Centre, and the RBI, “bringing to their notice the mismanagement and misleading disclosures to the general public for taking appropriate action but these have not been considered”.  In his plea, Subramanian has alleged that from 2016 onwards, the LVB, due to mismanagement and serious violations of banking regulations, fell into doldrums.