The Karnataka High Court on Monday issued emergent notices to the State government, Central Bureau of Investigation (CBI), Reserve Bank of India, Canara Bank and others directing them to file objections in a petition filed challenging the taking over of Amanath Cooperative Bank by the Canara Bank.
Justice B S Patil issued the notices in response to the petition filed by five people, including senior Congress leader C K Jaffer Sharief, and adjourned the matter till October 7.
Sharief submitted that innocent depositors have lost several crores due to scams at Amanath Cooperative Bank and Al Ameen Charitable Trust. He sought a CBI inquiry into the scam and also encroachment and selling of huge tracts of Wakf Board properties.
He alleged that despite presenting several petitions to the State government seeking an inquiry, there had been no action on the issue.
The management of Amanath Cooperative Bank had approached Canara Bank to take it over.
In a letter dated September 27, the Canara Bank had agreed to this proposal in principle.