RBI's Failure to Exercise Regulatory Powers Under Chapter IIIB Can Be Challenged Through Writ of Mandamus

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....The HC dismissed a letters patent appeal challenging maintainability of a writ petition against the RBI for failing to exercise regulatory powers under Chapter IIIB of the RBI Act regarding alleged fund misappropriation in ECL. The court affirmed that a writ of mandamus is maintainable where a public authority fails to exercise statutory powers, following CAG v. K.S. Jagannathan. The HC noted that despite RBI identifying violations by ECL in an email dated May 24, 2024, no action was taken. The court rejected arguments that NCLT proceedings barred the writ petition, clarifying that NCLT lacks jurisdiction to issue prerogative writs directing RBI to exercise powers under the RBI Act.....