Patna HC issues notices to RBI, SBI and Centre

Last Updated: Monday, August 9, 2010 - 22:20

Patna: The Patna High Court today issued
notices to RBI, SBI and the central government to file their
respective replies on a PIL complaining "opressive and
capricious acts" of insurance companies in connivance with
banks.

A division bench of Chief Justice Rekha M Doshit and
justice Jyoti Sharan ordered issue of the notice on the PIL
filed by S N Singh, an advocate of the court.

The PIL had alleged that SBI and its subsidiary SBI Life
Insurance force customers to take insurance policies when
approached for loans.

"SBI compels the needy persons to buy an insurance policy
for a loan facility to avail hefty commission on deposit of
first premium and non-collection of second instalment finally
leads to abrupt closure of the insurance scheme," he alleged.

PTI



First Published: Monday, August 9, 2010 - 22:20

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