Excelsior Correspondent
Srinagar, Aug 26: High Court has granted the Government further time for filing response to the plea seeking the introduction of Islamic Banking in Jammu and Kashmir.
A division bench of Chief Justice Pankaj Mithal and Justice Sanjay Dhar granted the time as the appearing for Government requested for the same.
Assistant Solicitor General of India (ASGI) Shamshi submitted that the counter affidavit on behalf of Reserve Bank of India would be treated on behalf of union Finance Ministry.
“In view of the above, only the counter affidavit of respondent No. 3 and 4 is to be called upon,” the court said adding with “Accordingly, we direct counsel for the respondents No. 3 an 4 to file counter affidavit within further period of one month and no more.”
Jammu and Kashmir People’s Forum, a non-government organization, filed the PIL. The Forum also seeks direction to the J&K Bank to take immediate steps for the opening of Shariah-compliant windows to accomplish the objective of mass level participation in Shariah Banking.
It also seeks direction to J&K Bank Limited to place before the court the entire details of NPAs and the steps taken for the recovery of the outstanding amount in NPAs, saying the same is public money which cannot be allowed to be misappropriated either by the account holders or by the management of the bank.
In 2013, Ministry of Finance had requested RBI to give its considered opinion regarding feasibility of introducing Islamic banking in India after examining all the legal, technical and regulatory issues relating to the matter.
“RBI has also forwarded a Technical Analysis Report based on the recommendation of the Group to the Government in December.
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