In the first instance of its kind, the government's decision on the appointment of a deputy governor of the Reserve Bank of India has been challenged in court.
PK Biswas, one of the executive directors of the RBI, has filed a petition challenging the appointment of Usha Thorat as a deputy governor. Thorat was promoted as deputy governor in November 2005. The petition was filed on February 19 in the Delhi high court against the government of India and the RBI governor.
Both Biswas and Thorat had joined RBI in 1972. The appointment of deputy governors is done by the government on the recommendation of the RBI governor.
Biswas declined to comment saying the matter was sub judice. An RBI spokesperson confirmed that Biswas had filed a petition against Thorat's appointment but declined to give details.
According to sources, the petition states that the appointment of Thorat superseded seniority criterion as Biswas was placed higher on the merit list even though both of them joined the RBI the same day.
This is the second time that the appointment of a deputy governor has caused discontent among senior RBI officials. When KJ Udeshi was promoted as deputy governor in 2003, then executive director KL Khetrapal had resigned in protest.
Currently the RBI has four deputy governors - Rakesh Mohan (in charge of markets), V Leeladhar (head of banking supervision), Shyamala Gopinath (foreign exchange and government business) and Usha Thorat (in charge of rural development and co-operative banks).Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
