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The Union government has said that it is not considering any proposal to set up dedicated special courts for the fast trial and disposal of bank fraud cases in the country. People are demanding the Government to create special courts for fast disposal of bank fraud cases. According to the RBI’s Annual Report 2024-25, the total amount involved in banking frauds rose from Rs. 12,230 crore in FY24 to Rs. 36,014 crore in FY25.
The clarification was given in the Lok Sabha on Friday by Arjun Ram Meghwal, Minister of State (Independent Charge) for Law and Justice. He was responding to a written question from MPs GM Harish Balayogi and Lavu Sri Krishna Devarayalu, who had asked whether the government planned to create special or fast-track courts to deal only with bank fraud cases.
In his reply, the Minister said that the government currently has no proposal to establish such dedicated special courts anywhere in India. He also explained that existing laws do not require the creation of special courts specifically for bank fraud matters.
The Ministry of Corporate Affairs informed the House that the Companies Act, 2013 does not have any provision mandating special courts to exclusively try cases related to bank fraud. Similarly, the Department of Financial Services, after consulting other Ministries and Departments that deal with bank fraud laws, confirmed that none of those Acts provide for special courts either.
Because of this position, the government said that it has not carried out any consultations, set any timelines, or conducted any impact studies regarding the creation of dedicated bank fraud courts.
