The High Court of Karnataka has ordered issue of notices to the State Government and the Lokayukta institution on a petition filed by Muslim Cooperative Bank Ltd., Mysuru, claiming that the Lokayukta had no jurisdiction over the petitioner-bank.
Contending that the State Government neither had any share capital nor controlling stake in the bank, which is an autonomous institution under the Karnataka Cooperative Societies Act, it has been claimed in the petition that the Lokayukta could not have acted upon a complaint against the bank under the provisions of the Karnataka Lokayukta Act, 1984.
The bank has questioned the report submitted by the Upalokayukta based on a complaint against the bank, and the actions of the Lokayukta, who asked the Government to submit an action-taken report based the report of the Upalokayukta.
As the Government had asked the bank to inform the action taken based on the report forwarded by the Lokayukta, the petitioner has sought a direction from the court to quash the report of the Upalokayukta and the Lokayukta.
A Division Bench comprising Justice P.S. Dinesh Kumar and Justice P. Krishna Bhat, before whom the petition came up for hearing, adjourned further hearing while asking the Government to file its response.
