As a part of my research I started investigating the financial industry in general. What I discovered was something that I feel needs to be highlighted to the higher authorities. I am not able to reach any of those higher authorities like the governor of RBI, Prime Minister, Finance Minister or the chief of SEBI. Although I tried to reach them by way of RTI inquiries and other available means, I did not get an appropriate reply and therefore feel the need to take a legal opinion on the matter. The Discovery: The practice of charging interest is a grave mathematical error. The simple act of charging interest can be illustrated as follows: We set up a central bank (RBI) to facilitate liquidity in transactions. Our central bank prints promissory notes (also known as currency notes) of various denominations. A component of interest is charged upon disbursement of these notes. It is important to note that although interest is charged, it is impossible to pay, since it does not exist, that is because it was not printed in the first place. Thus the arrangement where the bank disburses the Principal and demands a certain percentage of Interest, makes it impossible to honour and therefore a proportionate number of people within the society have no option but to default. Human nature does not like to default. Thus in order to resist default, a person is more likely to incline towards crime or activities not favourable for the society at large. The crime charts have been showing a steady rise, which evidently indicate the consequences of the practice of demanding something that does not exist. Unless this practice is completely stopped, our children will face even worse consequences. Either they will turn to crime because of this financial vacuum or they could be victims of crime. In either case, such an atmosphere is not safe for our children. Thus I am seeking legal assistance from a Professional Lawyer / Advocate, to bring this subject up in the judicial circle of India, so that appropriate measures can be taken to relieve the Indians from the injustice that they are currently subject to.
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1. if you can show before the court that huge interest is levied and it is unreasonable, unfair and against the interest of people then definitely you will get proper relief.
2. under article 13 of the constitution of india, the supreme court has power to take judicial review of the any law, rule, bylaws etc of india.
3. if court found that it is unreasonable then this rule shall be declared unconstitutional.
1.You can writ to the all the concerned ministries to highlight this ailments.
2. Since nothing substantial is expected to happen seeking legal recourse through constitutional machinery of court is advisable.
3.SO file a PIL in the high court or preferably supreme court since it is a national issue.
4Do carry proper research work in support of your case to get a favourable order form court.
Dear Sir, Thank you for your answer. Its not about huge interest but the charging of interest itself is something that is illegal by nature. As I have mentioned in my query, since interest is not printed there is no way that it can be paid and thus demanding interest is completely unethical and illegal. Hope I was able to articulate my point clearly. Regards Sajjad
Yes, as I advised do file a PIL.If any order is passed that would ne a landmark decisison in dia only because of you.
All The very best.
In my view you may get little or no help by approaching legally to this issue.
Your research work is really impressive and informative but how are you going to start this as you are not aware where the scratch is?
What are the sources that led you to believe that the Central bank of India (RBI) is printing the so called promissory notes in the name of currency and interest is charged on it?
If you dont get the information through RTI act then either you are approaching the wrong authority with the right substance or it may be such information are not available or is not of any public interest.
If you still are interested to proceed, then you may aproach the apex court with a PIL seeking to solve the issue which is ion the interest of the nation.
If you are confirmed that the government is charging interest which is not available by any means, then in the interest of welfare of the people as a whole you may file a PIL before supreme court and await the response.
If your application is allowed then it may create a history in the country.
Dear Sir (Adv. Kalaiselvan), Thank you for both your replies. To begin with I will answer your first question which is as follows: What are the sources that led you to believe that the Central bank of India (RBI) is printing the so called promissory notes in the name of currency and interest is charged on it? Apart from the fact that it is universally known that a currency note is a promissory note, you will find that all Indian currency notes are printed with the following statement. "I promise to pay the bearer sum of rupees so-and-so". Thus statement leaves no doubt whatsoever that a currency note is a promissory note. I hope I was been able to address your first concern. Secondly, if interest is charged on the said promissory notes. Once again it is universally known fact that central banks charge the member banks something called Repo-rate. This Repo rate is nothing but Interest. Apart from this, if we glance through the Annual Reports of RBI we can see in their "Profit and Loss Statement" the primary component of revenue is Interest. Thus there is no doubt that RBI charges Interest. I hope I have answered your second concern. The point that I am trying to highlight is that though the central bank prints or creates the currency, it technically can't create the interest component. It would not make any sense to create interest while creating currency. However when it demands Interest it is demanding something that is not created at all, thus it is impossible to pay interest. If the currency created by RBI is x and the interest levied is y how can x+y be paid if y was never created ? The result is something similar to a game of Musical Chair. There is always one chair less and therefore people have to rush to get to the chair. That is why you see seasoned businessmen fail in their commitments to banks. The problem is they do not get the chair in this musical chair. Your kind words are very encouraging, however I would like to know if you can spare some time to guide me through the process of filing a PIL in the apex court. I will gladly pay you your professional fees for the same. Thanks again for your replies, With a lot of love and respect Sajjad Pavne +[deleted]
I have great respect for the people who have their time spared on such very useful and pubic interest topics which not only can be whistle blower but also a step taken by a citizen of the country towards the welfare of the fellow citizens and also the nation.
Well, thank you for your appreciations, at the same time, my suggestion is that you may contact an advocate practicing in supreme court directly who would be of more help to you. There are plenty of lawyers in this forum who practice law in supreme court alone.
Dear Sir, (Adv. Kalaiselvan) Once again thank you for the prompt response. Its been a while since I am looking for a legal counsel but strangely I am yet to find someone. That's the reason I requested you to guide me, by way of mails or on phone so that I, myself could do all that is required to approach the apex court. Although I live in Mumbai, I would not really mind travelling to Delhi to put this up myself, but I know a professional is always far better than an amateur. It would be very kind of you if you could recommend someone so as to achieve the objective. Many Thanks to you once again May God Almighty bless you abundantly Sajjad Pavne +[deleted]
there are number of lawyers on this website from Delhi
2) profiles of advocates from Delhi are displayed on this website
you can contact any of them for filing PIL in SC
Dear Mr. Sajjad Pavne,
You can get the particulars of some legal luminaries who practice law only in supreme court and their data can be found in online legal forums like this and even from lawyers club India.com. etc.
Thank you for your appreciations, at the same I appreciate your efforts and motive to fight such things that too as party i person.
You can take the assistance of some lawyers of this forum for getting your matter drafted in the maner known to law or the procedures followed in the courts.
However the procedure in Supreme court would differ to other courts o the country, hence you have to take the support of a lawyer from supreme court.
In fact you can get free legal assistance from legal services authority situated in the supreme court complex.
If you would like to get yor draft scrutinized and refined, you may take the assistance of any expert lawyer of this forum too.