February 24, 2016
In a judgment having far reaching implications for private banks, the Supreme Court on Tuesday ruled that their chairpersons, directors and officers are public servants and can be prosecuted for corruption under the anti-corruption law.
A bench of Justice Ranjan Gogoi and Justice PC Pant held all officials of a private bank operating under the license issued by the Reserve Bank of India would be defined as public servants under the Prevention of Corruption Act, a law meant to prosecute government employees caught indulging in a corrupt practice.
The court held bank employees, whether private or government, discharge a public duty and are therefore amenable to the jurisdiction of the special law aimed to stem corruption.