Kochi: The Kerala government's move to
start an Islamic financial institution on the lines of Islamic
banks has been challenged by Janata Party president
Subramanian Swamy in the state high court.
The court posted the matter to January five.
Swamy said the government in its October 14 order
accorded sanction for registration of Islamic finance serving
company by Kerala State Industrial Development Corporation to
provide financial service as per the Shariah laws.
KSIDC would contribute about 11 per cent equity and
the corporation was taking steps to promote the Islamic
financial institution, Swamy submitted.
The proposed institution will not collect or charge
interest for financing.
The CEO of the proposed company has to report to
Shariah Advisory board, Swamy stated.
When the matter came up before a division bench,
comprising Chief Justice S R Bannurmath and Justice A K
Basheer, the court pointed that the petitioner has not
produced documents to show the constitution of the board.
That alone will show whether the government has any
control over the board, it said.
Swamy sought time to produce the documents.
PTI
First Published: Tuesday, December 08, 2009, 20:32