The Union Government has categorically informed the Lok Sabha that no proposal is under active consideration for setting up Special Courts for Bank Fraud Cases anywhere in India.
The clarification came in a written parliamentary response, firmly placing reliance on the existing statutory framework governing economic offences.
Minister of State for Law and Justice, Shri Arjun Ram Meghwal, while replying to a starred question in the Lok Sabha, stated that the Government of India has not initiated any move to establish Special Courts for Bank Fraud Cases for expedited trial or disposal.
The response addressed queries raised by Members of Parliament GM Harish Balayogi and Lavu Sri Krishna Devarayalu.
The Minister clarified that existing central legislations do not mandate the creation of Special Courts for Bank Fraud Cases.
Specifically, the Ministry of Corporate Affairs has confirmed that the Companies Act, 2013 does not envisage exclusive special courts for prosecution of bank fraud-related offences.
Further, the Department of Financial Services, after due consultation with concerned Ministries and Departments administering banking and financial laws, has also affirmed that none of the applicable Acts provide statutory backing for Special Courts for Bank Fraud Cases.
Given this legislative position, the Government has stated that no inter-ministerial consultations, timelines for implementation, or impact studies have been undertaken in relation to constituting such courts.
The Centre has maintained that bank fraud cases continue to be adjudicated under the existing judicial infrastructure, including designated courts under special economic statutes where applicable.
The official reply makes it clear that until Parliament enacts a specific legislative mandate, the establishment of Special Courts for Bank Fraud Cases remains outside the present policy framework of the Union Government.
Parliamentary and Legal Details
- House: Lok Sabha
- Responding Minister: Arjun Ram Meghwal
- Ministry: Law and Justice
- Question Raised By: GM Harish Balayogi, YSR Congress Party, Lavu Sri Krishna Devarayalu, YSR Congress Party
- Ruling Party at Centre: Bharatiya Janata Party
- Bench Details: Not applicable as the matter was addressed through a parliamentary written reply and not judicial adjudication
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