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2021 (9) TMI 561 - HC - Indian LawsPower to legislate in the field of Cooperative Societies - scope/ jurisdiction falls exclusively with the State and does not lie within the domain of the Union, much less the Reserved Bank of India? - HELD THAT:- The Parliament by Constitution (97th Amendment) 2011 while inserting Article 243ZL(1) provided that in case of cooperative society carrying on the business of banking, the provisions of the Banking Regulation Act 1949 shall also apply. This provision was struck down by the Gujarat High Court in RAJENDRA N SHAH VERSUS UNION OF INDIA & ANR. [2013 (4) TMI 972 - GUJARAT HIGH COURT], whereby Part IXB introduced by way of aforesaid amendment was declared ultra vires the constitution for want of rectification by the State Legislation under proviso (2) to Article 368 (2). The aforesaid judgment has been upheld by the Supreme Court recently in UNION OF INDIA VERSUS RAJENDRA N SHAH & ANR. [2021 (9) TMI 315 - SUPREME COURT]. The petitioner has therefore challenged the constitutional validity of amended Section 4 of the Banking Regulation Amendment Act, 1965. The argument therefore is that the impugned order dated 25.06.2021 issued by the Reserve Bank of India is absolutely incompetent and lacks in authority. Issue notice to the respondents on payment of PF within seven days, returnable within eight weeks - List after eight weeks.
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