Kerala HC adjourns petition against Islamic banking
George Joseph / Kochi Dec 09, 2009, 00:22 IST
The Kerala High Court today adjourned a petition filed by Subramanian Swamy, a former Union minister, against the proposed commencement of an Islamic bank with state participation. A bench of Chief Justice S R Bannurmath and A K Basheer adjourned the case for january 5, for a detailed hearing.
Swamy had challenged the October 14 order of the principal secretary, industries, of the state government, allowing Kerala State Industrial Development Corporation (KSIDC) to register a company to provide banking services as enjoined in Muslim personal law (sharia). The Kerala government proposes to set up the first Islamic bank in India, with 13 per cent equity participation of KSIDC. The proposed bank will be registered as an NBFC, as the Banking Regulation Act does not provide for operating banks under the rules in question.
The petitioner argues that such an institution would be against the basic principles of the country’s Constitution, that provides equal status to all religions. Starting a bank that follow sharia principles and under a sharia board will be a preferential treatment to a religion.
KSIDC had invited applications for the posts of chief executive officer and company secretary for the proposed NBFC through its web site. The notification states the selected officers should report to the sharia board and clearly states the institution would be governed as in Muslim personal law. As Sharia principles are confined to Muslims, commencing a bank under this law will be against the basic principles of the Constitution, the petitioner says.
I first extend my congratulations to Dr. Subramanian Swamy. The proposed Islamic banking concept should be outthrown from the minds of the left govt. This is high time for the people of kerala to teach a fitting leason to the communist govt. What is the need of coined an idea top impose shariah when these people are opposed to our uniform civil code.
Are we going mad? People of kerala should awake from their decade long sleep and prevent kerala being divided on religious lines. i.e North Kerala and South Kerala
I don't know how many of the people responding do know islamic banking or in other terms banking based on principle other than interest!! I don't know how many of the people responding knows that even Jesus had to whip out the jewish bankers who lend money based on interest? I don't know how many of the respondants know about micro finance. I think this is one of the issues that all of us suffer from. Even before we know what the truth is, we draw out the dagger!!
Posted by: Vishwas.Kulkarni
December 14 , 2009, 12:42 IST
Agreed. But the larger issue here is the imposition of sharia in Kerala, which is what this story is all about. i remember the hue and cry minorities made when there was a call to implement a uniform civil code --a law that would have been fair to all communities. Yet, the pseudo secularists attacked a proposed piece of legislation that was truly secular in spirit, and now these hypocrites are accepting sharia because it suits them. What a shame, that our politicians bend backwards to please the minorities irrespective of the merit -- or the absolute lack of it -- in their proposals
Kerala Governments decision to start Shariat based institution would lead to a Kasmir like situation in due course. This should be nipped at the bud. Congrats to Subramanian Swamy for taking up the cause for National Integrity.By the by does the Kerala Government have any plans to introduce the criminal law for Muslims as per Shariat.
India (Bharat) is a secular state, meaning state would not give any treatment based on religion or not take decision based on religion. Hence, this step is against secular principle and hence is not permissible. Government of India must intervene and prevent Government of Kerala to sponser/participate or allow such a bank.
Islamic banking is a cancer waiting to spread. we should not allow this to happen. look at what has happened in dubai. there's no protection for investors as they are not governed by RBI. this is definitely un-constitutional.
Posted by: sajith
December 29 , 2009, 15:24 IST
Islamic banking and the finance industry is growing at an annual rate of 20%. Many international as well as local institutions have stepped into this multi-billion dollar booming industry by establishing its Islamic wings and units.The underlying principle of Islamic banks is the principle of justice which is an essential requirement for all kinds of Islamic financing. In profit sharing of a financed project, the financier and the beneficiary share the actual or net profit/loss rather than throwing the risk burden only to the entrepreneur.so it should be welcomed anyways.
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